The analyst finds it difficult to see any real incentive for Khazanah to pare down its stake in Axiata, especially since the latter is in the process of monetising its tower assets (which it thinks will most likely materialise in 2016 via a spinoff). Based on an financial year 2015 (FY15) equity value/EBITDA (EV/EBITDA) basis, major tower companies can trade between 14 to 19-fold while Axiata is currently trading at eight-fold, RHB Research calculated. “Therefore, we thin k the market has yet to fully price in the potential monetisation of Axiata’s tower asset,” Lim said. Furthermore, the analyst believes Axiata does not need cash, unlike True Corp (True). It noted that in June, China Mobile acquired an 18 per cent stake in True via a rights issue to give True some funds to pare down its debts. “Axiata’s gearing is relatively low, with net debt/EBITDA of 1.3 -fold as at the first quarter of 2014 (1Q14),” it observed. Overall, RHB Research maintained ‘neutral’ on Axiata with a n unchanged sum of parts-based (SOP-based) fair value of RM6.85. Domestically, it opined that intensifying competition may put a lid on Celcom Axiata Bhd’s Celcom) growth. “Axiata’s FY14 earnings growth outlook remains cloudy on XL Axiata’s earnings dilution following its acquisition of Axis. However, we expect to see a meaningful earnings recovery for Axiata in FY15,” Lim projected. Sources: http://www.ranker.com/list/the-jakarta-globe-xl-axiata-axis-capital-group- merger-plans/abbyditter http://www.yelp.com/topic/la-crescenta-montrose-the-jakarta-globe-axis- capital-group-telecom-purchase-xl-axiata
XL Officially Merges with AXIS Becoming a Single Business Entity JAKARTA, April 8, 2014 – PT XL Axiata Tbk (XL) today officially announces its merger with PT Axis Telekom Indonesia (AXIS) has become effective, marked by the signing of merger deed
Jakart. XL Axiata PT Axis Capital Group Jakarta Telecom news, the country’s second-largest mobile network operator, reported a 51 percent increase in profit in the first three months of this year thanks to currency gains.