Axiata, Bharti mull merging Bangladesh ops

-A +A

KUALA LUMPUR (Sept 9): Axiata Group Bhd and Bharti Airtel Ltd (Bharti) are exploring the possibility of combining telecommunication business operations of their subsidiaries in Bangladesh.

According to Axiata’s filing with Bursa Malaysia today, both parties have entered into an exclusive discussion for the abovesaid purpose.

“This announcement is to facilitate the ongoing discussions and exchanges of information between the parties, including but not limited to discussions with the relevant regulatory authorities,” the filing read.

Axiata and Bharti said they will issue further announcement in the event there is any material development on this matter.

Both parties intend to combine the business operations of their telecommunication subsidiaries in Bangladesh, namely Robi Axiata Ltd and Airtel Bangladesh Ltd, the filing stated.

Axiata ventured into the Bangladesh telecommunication field via Robi Axiata Ltd, a joint venture company between Axiata and NTT DoCoMo Inc of Japan.

While Bharti entered Bangladesh after it acquired a majority of the shares in Airtel Bangladesh Ltd in 2010.

Shares in Axiata closed four sen or 0.68% higher at RM5.91, for a market capitalisation of RM51.44 million.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)