State-owned China Mobile has reportedly approached Axiata about buying 20% of the Malaysia-based Asian telecoms giant.
But a deal was not reached because Axiata and its largest shareholder Khazanah Nasional saw the potential offer for the stake, which…
State-owned China Mobile has reportedly approached Axiata about buying 20% of the Malaysia-based Asian telecoms giant.
But a deal was not reached because Axiata and its largest shareholder Khazanah Nasional saw the potential offer for the stake, which would be valued at more than US$3.7bn based on yesterday’s stock price, as too low, reported Bloomberg citing sources.
China Mobile and Axiata were unable to comment on the speculation.
The Chinese group has been looking at international M&A to branch out of its domestic market to make use of its cash reserves. In June it snapped up an 18% chunk of Thai telco True Corp for US$881m.
The size of its potential offer for Axiata is unclear but a US$3.7bn deal would be China Mobile’s biggest overseas acquisition to date, added the report. The company is already the world’s biggest mobile player by customer numbers, which stood at around 781 million at the end of 31 March 2014.
Axiata has more than 250 million customers and has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, and strategic telecoms stakes in India and Singapore.
Last month it was reportedly among four parties shortlisted to bid for a stake in Indian towerco Viom Networks.
