ID :
202076
Thu, 08/18/2011 - 10:21
Auther :
Shortlink :
https://oananews.org//node/202076
The shortlink copeid
'AXIATA MAY UP STAKE IN INDIA'S IDEA TO 25 PCT'
KUALA LUMPUR, Aug 18 (Bernama) -- Malaysian company Axiata Group Bhd, which has increased its stake in India's Idea Cellular by 0.9 per cent to 19.98 per cent, may opt to increase it further.
"The Economic Times of India reported that Axiata may be looking to raise its stake to 25 per cent, citing people familiar with the deal," said OSK Research in its Investment Research Daily on Thursday.
Given that Axiata had written down the value of its 19.1 per cent stake to INR120 in the fourth quarter of last year, the latest acquisition would serve to average down the implied cost of its investment in Idea, it said.
However, it said, a small stumbling block to further increase its stake in India's third largest mobile operator could be the approval needed from Aditya Birla Group, Idea’s major shareholder, for any stake beyond 20 per cent.
The move to increase its stake demonstrates Axiata’s confidence in the prospects of the telco industry in India and Idea’s longer-term potential on the back of its 3G rollout, said OSK Research.
Idea contributes less than 10 per cent to Axiata’s net profit.
OSK said Axiata would stay as its preferred pick in the telecoms sector in addition to Telekom Malaysia Bhd.
It maintained a "buy" call on Axiata with a target price of RM5.77
(US$1.93).
-- BERNAMA
"The Economic Times of India reported that Axiata may be looking to raise its stake to 25 per cent, citing people familiar with the deal," said OSK Research in its Investment Research Daily on Thursday.
Given that Axiata had written down the value of its 19.1 per cent stake to INR120 in the fourth quarter of last year, the latest acquisition would serve to average down the implied cost of its investment in Idea, it said.
However, it said, a small stumbling block to further increase its stake in India's third largest mobile operator could be the approval needed from Aditya Birla Group, Idea’s major shareholder, for any stake beyond 20 per cent.
The move to increase its stake demonstrates Axiata’s confidence in the prospects of the telco industry in India and Idea’s longer-term potential on the back of its 3G rollout, said OSK Research.
Idea contributes less than 10 per cent to Axiata’s net profit.
OSK said Axiata would stay as its preferred pick in the telecoms sector in addition to Telekom Malaysia Bhd.
It maintained a "buy" call on Axiata with a target price of RM5.77
(US$1.93).
-- BERNAMA
