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Bloomberg: Axiata Group Bhd., Malaysia’s biggest wireless carrier, is considering an initial public offering of its tower unit that could raise at least $ 500 million, people with knowledge of the matter said.
The Kuala Lumpur-based company has been speaking to potential advisers to explore a domestic listing of Edotco Group Sdn. that could take place as soon as this year, according to the people. Axiata may invite banks to formally pitch for a role on the deal this quarter, the people said, asking not to be identified because the information is private. Malaysia hosted $ 1.7 billion of first-time share sales last year, more than five times the amount raised in 2016, data compiled by Bloomberg show. Edotco would join Edra Power Holdings Sdn., the country’s second-biggest independent power producer, and Brunei’s largest bank in seeking to list on the Kuala Lumpur stock exchange this year.
Deliberations are at an early stage, and Axiata could decide not to proceed with the offering, according to one of the people. Representatives for Axiata and Edotco declined to comment.
Edotco raised $ 700 million in a private placement last year from investors including Axiata’s top shareholder, sovereign fund Khazanah Nasional Bhd., and government-backed Innovation Network Corp. of Japan, according to an April statement. Malaysia’s second-biggest pension fund, Kumpulan Wang Persaraan (Diperbadankan), also invested in Edotco through the deal, which reduced Axiata’s stake to 62.4%.
Axiata Chief Executive Officer Jamaludin Ibrahim said in a 2016 interview that the mobile operator plans to expand its overseas infrastructure operations ahead of an eventual listing of the business.
Edotco and a partner bought about 13,000 towers in Pakistan from Veon Ltd. for $ 940 million last year.
Earlier in the year, it completed the $ 89 million purchase of Tanzanite Tower Pvt, which owns about 700 phone towers in the country.
Edotco was started in 2012. It owns more than 26,000 towers spread across Malaysia, Sri Lanka, Bangladesh, Cambodia, Pakistan and Myanmar, according to the company’s website.
Reuters - Idea Cellular Ltd, India’s third largest mobile services operator, on Thursday unveiled a 67.5 billion-rupee ($1.1 billion) fundraising plan ahead of its merger with Vodafone’s local unit.
As part of the plan, Idea will raise 32.5 billion rupees by selling 326.6 million shares on a preferential basis to companies controlled by its parent Aditya Birla Group at 99.5 rupees apiece.
The deal will increase Aditya Birla Group’s stake in Idea to 47.2% from 42.4% currently.
Idea further intends to raise up to 35 billion rupees by selling shares, the company said in a statement, adding the options included a rights issue, preferential issue or a share sale to institutions. In March last year, Idea and Vodafone announced a merger deal to potentially create the biggest Indian phone carrier. The deal is expected to close this year.
As part of the deal, Aditya Birla Group had agreed to buy a minimum of 2.5% stake of the merged entity from Vodafone to own at least 26% of it.
Aditya Birla and Vodafone will eventually own an equal share of the joint venture, the companies said last year.
Vodafone said in a filing on Thursday it expected the merger deal to be completed during the first half of this year.
