|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||14.18 - 14.18|
|52 Week Range||12.80 - 22.02|
|Beta (5Y Monthly)||0.43|
|PE Ratio (TTM)||10.86|
|Forward Dividend & Yield||0.94 (6.65%)|
|Ex-Dividend Date||May 11, 2020|
|1y Target Est||N/A|
(Bloomberg) -- Malaysia’s political upheaval risks derailing a deal involving the nation’s biggest mobile-phone carrier, people with knowledge of the matter said.Talks between Axiata Group Bhd.’s biggest owner and Norwegian operator Telenor ASA that were re-opened earlier this year have come to a standstill, the people said. The change in Malaysia’s government -- at a time when Axiata is undergoing its own leadership transition -- has left executives and advisers uncertain about who’s going to push through a transaction, according to the people.Axiata and Telenor had already backed down from plans to combine their Asian telecom operations, opting instead for a more piecemeal approach where Telenor would initially buy a stake in the Malaysian carrier. Khazanah Nasional Bhd., the nation’s sovereign wealth fund, owns 37% of Axiata.The deepening coronavirus outbreak has added to uncertainties around the deal, the people said. Malaysia has the highest number of infections in Southeast Asia, and has imposed nationwide restrictions on movement. The complexity of the proposed transaction, which could involve merging the two companies’ phone-tower operations, is another factor.But the biggest hurdle is the political turmoil that broke out in February with the shock resignation of former Malaysian leader Mahathir Mohamad, the people said, asking not to be named. The change in government could lead to new senior appointments at state-backed entities like Khazanah, they said.Malaysia’s government wanted to reform large companies like Axiata, including by bringing in foreign investors. Still, that vision collided with Mahathir’s desire to avoid any major job losses.Muhyiddin Yassin, who succeeded as prime minister, delayed parliament sitting by more than two months to give himself extra time to shore up support and prove his majority in the divided legislature. Mahathir had called for a confidence vote, but he said in an interview last week the opposition coalition may lack the support needed to remove the current government.Izzaddin Idris, Axiata’s deputy chief executive officer, will take over from interim CEO Jamaludin Ibrahim by December. Shares of Axiata have slumped almost 23% this year, while the FTSE Bursa Malaysia KLCI Index fell about 18%.No final decisions have been made, and Khazanah and Telenor could resume talks on any deals, the people said. Representatives for Axiata and Khazanah declined to comment, while representatives for Telenor didn’t immediately respond to requests for comment.Axiata and Telenor first announced in May that they were in talks to combine their Asian telecom operations to create a company with $13 billion in sales and 300 million customers across nine countries. They ended their negotiations in September, citing “complexities” as the reason.Just four months after the carriers scrapped discussions, Khazanah and Telenor started exploring several possible scenarios including Telenor buying part of the wealth fund’s stake in Axiata, people familiar with the matter have said. A stake purchase could pave the way for more deals, such as a merger of Axiata and Telenor’s phone tower assets or consolidation in certain markets, as well as a combination and eventual listing of the two carriers’ frontier-market operations, the people have said.Telenor first entered Asia more than two decades ago and derives more than half of its revenue from the region. Beyond Malaysia, it also operates in Thailand, Bangladesh, Pakistan and Myanmar. Axiata, which has 150 million subscribers in total, also has business in Cambodia, Nepal, Sri Lanka and Indonesia.Telenor appointed Tone Hegland Bachke as its new chief financial officer last week. The telecom giant also named a new head for its operations in Asia with a goal to unite the business units across the region.(Updates to add Telenor’s new appointments in last paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Norway's Telenor is combining its Asian operations into a single entity under new leadership to be better placed to pursue deals in the region, its top executive said on Thursday. The move follows last year's failed deal between Telenor's Asian business and Malaysia's Axiata Group, which would have create a joint venture with nearly 300 million customers across south and southeast Asia. Oslo-listed Telenor, which has 176 million mobile subscribers in Asia, has appointed Chief Financial Officer (CFO) Joergen C. Arentz Rostrup as Head of Asia from May 1.
Dividend paying stocks like Telenor ASA (OB:TEL) tend to be popular with investors, and for good reason - some...
Norway's Telenor could see some impact from the coronavirus outbreak on hardware deliveries, but has of yet seen no impact on its business, its top executive said on Tuesday. "Overall, we haven't really seen the impact from the coronavirus on our business, and don't expect that going forward," CEO Sigve Brekke said at the company's capital markets day.
Norway's Telenor will see revenue growth of up to 2% annually until 2022, as it cuts costs further, rolls out 5G telecoms networks and increases dividends every year, the company said on Tuesday. Telenor has cut 22% of jobs since 2015, not counting acquisitions and divestment, and could cut a further 15% in the next three years, equivalent to around 3,000 full-time positions, the company said. "Solid growth opportunities in emerging Asia, and the strong customer demand for adjacent services in the Nordics is expected to be supportive of revenue growth," Chief Executive Officer Sigve Brekke said as Telenor laid out its 2020-2022 strategy.
Whilst it may not be a huge deal, we thought it was good to see that the Telenor ASA (OB:TEL) Executive VP & CFO...
Norway's Telenor posted higher-than-expected fourth-quarter operating profits on Wednesday and said it expects its underlying earnings to rise in 2020 after last year's decline. The company's October-December profit before interest, tax, depreciation and amortisation (adjusted EBITDA) rose 17% year-on-year to 11.88 billion Norwegian crowns ($1.33 billion), while analysts on average had expected profits of 11.68 billion. "Entering 2020, we will continue to focus on growth, efficiency and simplification," Telenor said in a statement.
(Bloomberg Opinion) -- This time, it might just work.Telenor ASA and Kuala Lumpur-based Axiata Group Bhd. are back at the negotiating table. Joining forces in South and Southeast Asia still makes sense for both carriers. Options including a mooted minority investment from Norway’s $27 billion telecoms heavyweight could be enough to get them started, with sales and spinoffs to follow.Talks for a potential deal resumed just four months after the parties scrapped discussions to create a combined entity with some 300 million customers in the region, Elffie Chew and Manuel Baigorri of Bloomberg News reported last week, citing people familiar with the matter. This time they may start small, with Telenor buying part of the nearly 37% stake held by Axiata’s largest shareholder, Malaysian sovereign wealth fund Khazanah Nasional Bhd.A partial deal isn’t the solution either carrier hoped for. It won’t bring any of the anticipated $5 billion in cost synergies from the previous structure, or much-needed scale. But it might just be a necessary detour.Last time, politics proved to be the undoing. Under the all-share combination laid out in May, Telenor would have held 56.5% of the combined entity. With most of the overlap in Malaysia and significant cuts planned, local politicians fretted over jobs. Telenor wasn’t paying a control premium either, some grumbled. Worse, Norway had months earlier banned imports of non-sustainable palm oil, hurting Southeast Asia’s exporters. Officials in Indonesia, a bigger market for Axiata than Malaysia in the third quarter, didn’t warm to the idea of government-controlled Telenor getting a foothold through the company.None of the financial pressures that brought the two together have gone away.Revenue is flatlining in Telenor’s home market, which it dominates, and in its Swedish fixed and mobile telecom operations. Growth is also stagnating in its Asian mobile businesses, which make up half the group’s revenue, especially in Malaysia and Thailand. Elsewhere, shrinking profit in Pakistan weighed on third-quarter earnings.Axiata, meanwhile, needs to invest in 5G technology and in its ability to cater for booming data and video-streaming demand. Moreover, Prime Minister Mahathir Mohamad’s government has promised to reduce the role of the state in local business. Incumbent Telekom Malaysia Bhd., also part-owned by Khazanah, has been deemed strategic. Axiata hasn’t.The question then becomes, how to get the deal done. For Telenor to buy a minority holding in Axiata, which has a market value of about $9.5 billion, might just be a doable, if unorthodox, step to gain clout in the region.Assuming it takes a 20% to 30% stake, Telenor would be tying up $2 billion to $3 billion of cash, presumably at a manageable annual funding cost. That’s a reasonable bet on an attractive future option, not least given Axiata trades at a slight discount, in terms of enterprise value to Ebitda, to peers like Malaysian tycoon T. Ananda Krishnan’s Maxis Communications Bhd. Telenor would be making a public commitment to the Malaysian government too, putting cash on the table as opposed to its stock swap proposal the last time. Such a deal would keep at bay rival bidders eyeing up Axiata’s component parts, arguably worth more than the whole.The heavy role of state-linked government entities in Axiata should help eventual steps up, by simplifying the path to control. A slower pace might help get reluctant Indonesian officials onside, or exclude the business.Even a less bullish scenario could still see Axiata hiving off parts of its business into ventures with Telenor – say, its towers business, Edotco.The downside, of course, is that such partnerships often fall apart. Malaysia’s government is entering an uncertain period, with 94-year-old Mahathir reluctantly preparing to hand over power to a successor. If it all goes wrong, Telenor would become a forced seller of a significant stake in a state shareholder-heavy Malaysian entity.Ideally, Telenor wouldn’t proceed without, for example, an in-principle regulatory approval for it to eventually merge its wireless carrier, Digi, with Axiata’s Celcom.Telenor can’t afford to stand still. Axiata offers a risky but salutary remedy. To contact the authors of this story: Clara Ferreira Marques at firstname.lastname@example.orgNisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
* Philippine shares see best session in two weeks * Malaysia's Axiata jumps on stake-sale talks report * Thai shares close at near two-month high By Anushka Trivedi Jan 17 (Reuters) - Southeast Asian stock markets climbed on Friday, with Philippine shares leading the pack, as encouraging data from China whipped up risk appetite. China, Southeast Asia's largest trading partner, grew by 6% in the fourth quarter, in line with market expectations, suggesting the world's second-largest economy was stabilising. "Such an environment should also offer emerging markets the chance to find a more stable footing and provide room for riskier assets to advance." Philippine shares climbed 0.9% in their best session in two weeks, with Jollibee Foods Corp topping the benchmark index.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical...
Telenor reiterated on Sunday Huawei would be involved in building Norway's 5G network along with Ericsson, one of several companies to continue working with the Chinese company despite U.S. pressure. Huawei faces increased official scrutiny in Europe amid U.S. allegations that it poses a security threat. Huawei, with which Telenor has collaborated for more than a decade on 4G, will continue to play a role in modernising its infrastructure, Hanne Knudsen, Telenor vice president for communications, told Reuters.
Telenor has picked Sweden's Ericsson as the key technology provider for its fifth-generation (5G) telecoms network in Norway, it said on Friday, gradually removing China's Huawei [HWT.UL] after a decade of collaboration over 4G. Fearing high-tech espionage, and battling with China over trade, the United States has pushed NATO allies such as Norway to exclude Huawei from lucrative 5G deals, and Norwegian security services also warned against the firm.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...
Norwegian telecoms firm Telenor ASA said it is still interested in potential mergers and acquisitions following the failed deal between its Asian business and Malaysia's Axiata Group. "We will be looking at value-creating opportunities," Chief Executive Sigve Brekke told a conference call on Wednesday. Telenor and Axiata in September called off their proposed deal to create a telecoms joint venture with nearly 300 million customers across South Asia and Southeast Asia, blaming "complexities" in the project.
Norwegian telecoms firm Telenor ASA <TEL.OL> said it is still interested in potential mergers and acquisitions following the failed deal between its Asian business and Malaysia's Axiata Group <AXIA.KL>. "We will be looking at value-creating opportunities," Chief Executive Sigve Brekke told a conference call on Wednesday. Telenor and Axiata in September called off their proposed deal to create a telecoms joint venture with nearly 300 million customers across South Asia and Southeast Asia, blaming "complexities" in the project.
Readers hoping to buy Telenor ASA (OB:TEL) for its dividend will need to make their move shortly, as the stock is...
Malaysian telecoms firm Axiata Group Bhd has asked its edotco towers unit to seek deals to enter new markets or expand in Southeast Asia and South Asia, and may consider selling a stake if attractive large investment opportunities arise. Axiata last month pulled the plug on a planned non-cash merger with Norway's Telenor ASA citing unspecified complexities. Axiata Chief Executive Jamaludin Ibrahim told Reuters on Thursday his company did not see chances for another group-level deal.
KUALA LUMPUR/SINGAPORE (Reuters) - Under pressure to deliver cash to shareholders after a merger with Norway's Telenor collapsed, Malaysia's Axiata has changed tack: It is now in talks to offload stakes in units and will no longer entertain a group-level deal, sources told Reuters. The strategy's success is crucial for the telecoms firm - majority-owned by sovereign wealth fund Khazanah Nasional Bhd and other state-linked funds - as it faces margin-destroying competition across Southeast Asia, huge investment in fifth-generation (5G) networks https://www.reuters.com/article/us-telecoms-5g-malaysia/malaysias-5g-plan-a-potential-boon-for-chinas-huawei-idUSKBN1W90RD and cash-hungry investors. Axiata Group Bhd and Telenor ASA in May began talks for a non-cash deal to create Southeast Asia's largest telecoms operator with 300 million subscribers.
KUALA LUMPUR/SINGAPORE, Oct 1 (Reuters) - Under pressure to deliver cash to shareholders after a merger with Norway's Telenor collapsed, Malaysia's Axiata has changed tack: It is now in talks to offload stakes in units and will no longer entertain a group-level deal, sources told Reuters. The strategy's success is crucial for the telecoms firm - majority-owned by sovereign wealth fund Khazanah Nasional Bhd and other state-linked funds - as it faces margin-destroying competition across Southeast Asia, huge investment in fifth-generation (5G) networks https://www.reuters.com/article/us-telecoms-5g-malaysia/malaysias-5g-plan-a-potential-boon-for-chinas-huawei-idUSKBN1W90RD and cash-hungry investors. Axiata Group Bhd and Telenor ASA in May began talks for a non-cash deal to create Southeast Asia's largest telecoms operator with 300 million subscribers.
Norway does not plan to block China's Huawei Technologies from building the country's 5G telecoms network, cabinet minister Nikolai Astrup told Reuters, a decision that puts it at odds with NATO ally the United States. The United States has alleged Huawei's equipment could be used by Beijing for spying, which the Chinese firm has repeatedly denied.
* U.S. President Trump considering an interim deal with China * Malaysia on track to fall for a second session * The Philippine index hits a two-week high By Anushka Trivedi Sept 13 (Reuters) - Most Southeast Asian stock markets rose on Friday, as signs of a de-escalation in the U.S.-China trade friction and European Central Bank's aggressive push for fiscal stimulus helped offset concerns about a global recession. Washington on Thursday was encouraged by Beijing's purchase of U.S. farm goods, ahead of planned talks next week, with U.S. President Donald Trump reportedly mulling the possibility of an interim trade deal, which would postpone tariffs or even roll back some of the existing ones. "Given that investors have been known to wear trade war emotion on their sleeve, any steps by China and the U.S. to ease tensions further ahead of face-to-face talks in Washington in the coming weeks will be a green light of risk sentiment" said Stephen Innes, Asia Pacific market strategist, AxiTrader.
(Bloomberg) -- CK Hutchison Holdings Ltd., the Hong Kong conglomerate backed by tycoon Victor Li, has made a preliminary approach to Axiata Group Bhd. about a potential combination of their Indonesian telecommunications operations, people with knowledge of the matter said.CK Hutchison informally expressed interest in exploring a combination of its Indonesian wireless business with the Malaysian carrier’s local unit, PT XL Axiata, the people said. The parties haven’t yet started any substantive negotiations, according to the people, who asked not to be identified because the information is private.Shares of XL Axiata jumped as much as 9.8% in early Tuesday trading in Jakarta, its biggest advance since Feb. 18. The stock has risen about 76% this year, giving the company a market value of $2.65 billion.Axiata, Malaysia’s biggest wireless carrier, and Norway’s Telenor ASA last week ended talks to merge their Asian telecommunications operations in a deal that would have created a company with 300 million customers across nine countries.The Malaysian company has been introducing strategic investors to some of its businesses and pushing into new areas as it seeks to revitalize growth. In July last year, Japan’s Sumitomo Corp. invested in its mobile advertising arm, while Tokyo-based trading house Mitsui & Co. bought a stake in Axiata’s digital services unit this year. Axiata’s wireless tower business has also attracted preliminary takeover interest in recent months, Bloomberg News has reported.The exact structure of any potential deal in Indonesia hasn’t been determined, according to the people. Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. A representative for CK Hutchison declined to comment.“Axiata has created significant value uplift and attractiveness for its operations and as evidenced in the last one year,” Axiata said in a statement in response to Bloomberg queries. “We have attracted a lot of suitors to partner with us and seeking to acquire our assets including Telenor, Mitsui, Sumitomo, among others.”Hutchison Asia Telecommunications, which houses CK Hutch’s telecom business in Indonesia, Vietnam and Sri Lanka, had about 45.7 million active customer accounts across the three countries, according to its latest interim financial report. Indonesia accounted for HK$3.7 billion ($472 million), or 86% of Hutch Asia’s total revenue in the first six months of 2019. It’s the only Hutch Asia’s market that posted positive earnings before interest, tax, depreciation and amortization.(Updates to XL Axiata share performance in third paragraph)\--With assistance from Fathiya Dahrul, Vinicy Chan, Tassia Sipahutar, Thomas Kutty Abraham, Shirley Zhao and Ville Heiskanen.To contact the reporters on this story: Elffie Chew in Kuala Lumpur at email@example.com;Manuel Baigorri in Hong Kong at firstname.lastname@example.org;Joyce Koh in Singapore at email@example.comTo contact the editors responsible for this story: Fion Li at firstname.lastname@example.org, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.