Axiata Up 2.4% on Bargain Hunting After Failed Telenor Tie-Up
11 September 2019 - 4:37PM
Dow Jones News
By Yantoultra Ngui
KUALA LUMPUR, Malaysia--Shares of Axiata Group Bhd. (6888.KU)
rose Wednesday, with investors taking advantage of the stock's dive
following the failed merger with a unit of Norway's Telenor ASA
(TEL.OS).
Shares of Axiata--Malaysia's largest telecom company by market
capitalization--ended the morning trading session 2.4% higher at
MYR4.21, making it one of the top gainers on the local bourse.
Shares of Telenor's Malaysian unit, DiGi.com (6947.KU), were down
0.2% at MYR4.59.
Axiata and Telenor had in May announced that they were
discussing a possible noncash merger of their Asian telecom and
infrastructure assets that would have created one of Asia's largest
telecom companies with potential annual revenue of $12 billion. On
Friday, they said the deal was off. Axiata shares slipped almost
16% Tuesday, the first day of trading following that news with
markets in Malaysia closed on Monday due to a public holiday.
"We believe the steep decline in Axiata's share price has
largely priced in investors' disappointment on the termination of
the Axiata-Telenor merger discussion," Kuala Lumpur-based Affin
Hwang Capital said in a research note.
The investment bank upgraded Axiata, which is majority-owned by
Malaysia's sovereign wealth fund Khazanah Nasional Bhd., to a hold
rating from sell, with an unchanged target price of MYR4.25, citing
stronger-than-expected overseas earnings and possible mergers and
acquisitions.
Write to Yantoultra Ngui at yantoultra.ngui@wsj.com.
(END) Dow Jones Newswires
September 11, 2019 02:22 ET (06:22 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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