KUALA LUMPUR, Sept 5 — Kenanga Investment Bank (IB) Research maintained its “outperform” call on Axiata Group Bhd with a target price of RM4.80, following the announcement of a partnership with Pakistan’s, Dawood Hercules.
In a research note today, the bank said Axiata’s 62 per cent owned subsidiary, Edotco, would partner Dawood Hercules to acquire the tower assets of Pakistan Mobile Communications for US$940 million.
Kenanga said the deal is set to strengthen Edotco’s leadership position in Pakistan as the largest independent Towerco.
It said with the high-quality portfolio anchored by the top operator, Edotco is confident of enhancing operational capability further, via leveraging on its existing track records in managing about 26,000 towers regionally.
Post acquisition completion, Kenanga said Edotco is expected to operate a combined 40,000 (of which 32,000 are owned) tower portfolios in six countries and ranked as the 8th largest towerco globally with a tenancy ratio of 1.5 times.
As at 11am, Axiata’s share price was nine sen better at RM5.02 with 5.72 million traded. — Bernama
