KUALA LUMPUR: AmResearch continues to recommend a BUY on Axiata Group Bhd valuing it at RM6.05/share, derived from sum-of-parts valuation.
Etisalat, the UAE's biggest phone company, has said it is considering investing in Idea Cellular to tap the world's second-largest wireless market. Entry to India would enable a pan India presence, as well as availability of recently awarded 3G licences.
Idea needs a strong financial backing for the outlay of 3G infrastructures and Etisalat has the ability to tap Middle Eastern petro dollars for such purpose.
Etisalat already has a working partnership in XL Indonesia via Axiata, owing a 16% stake.
'Idea does not disclose the amount it needs to allocate for 3G capex, but our ballpark figure would be US$5 billio to US$7 billion in the next five years.
'Despite its share price outperformance, we believe valuation is attractive at prevailing price, which implies a trailing enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) of only 6.4 times (versus SingTel's 10.5 times and other regional (developing) peers 6.2 times),' it said.
Etisalat, the UAE's biggest phone company, has said it is considering investing in Idea Cellular to tap the world's second-largest wireless market. Entry to India would enable a pan India presence, as well as availability of recently awarded 3G licences.
Idea needs a strong financial backing for the outlay of 3G infrastructures and Etisalat has the ability to tap Middle Eastern petro dollars for such purpose.
Etisalat already has a working partnership in XL Indonesia via Axiata, owing a 16% stake.
'Idea does not disclose the amount it needs to allocate for 3G capex, but our ballpark figure would be US$5 billio to US$7 billion in the next five years.
'Despite its share price outperformance, we believe valuation is attractive at prevailing price, which implies a trailing enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) of only 6.4 times (versus SingTel's 10.5 times and other regional (developing) peers 6.2 times),' it said.
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