Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
KUALA LUMPUR: Axiata Group Bhd has no immediate plans to increase its stake in Indian-associate IDEA Cellular Ltd beyond a 20% threshold, the company said, denying reports that it is looking to raise its stake to 25%.
'We have no current plans of increasing our stake in IDEA,' Axiata said in an emailed reply on Thursday, Aug 18.
It confirmed, though, that the group had just increased its holdings in IDEA by 0.9% through open market purchases, raising holdings to 19.98%.
Citing unnamed sources familiar with the deal, The Economic Times of India reported Axiata may be looking to raise its stake in IDEA to 25%, once it receives permission from IDEA's main shareholders, the Aditya Birla group.
IDEA shares rose as much as 3.23% to INR97.5 intra-morning following the report. The stock was trading at INR95.95 at 1pm Kuala Lumpur time.
Axiata had paid an average of INR103 for the additional 0.9% stake in IDEA, OSK Research wrote in a note this morning, citing shareholder filings on the Bombay Stock Exchange. That's 9.05% above the INR94.45 that IDEA closed on Aug 17.
'A small stumbling block' to Axiata increasing its holdings in IDEA beyond 20% could be the approval needed from the Adita Birla Group, OSK Research wrote in the note this morning, ahead of the statement from Axiata to deny the news report.
The additional stake purchase from the market 'would serve to average down the implied cost of its investment in India's third largest mobile operator', OSK Research added in the note, pointing out that Axiata had written down the value of its 19.1% stake in IDEA to INR120 in 4QFY2010.
OSK retained a 'buy' on Axiata and a target price of RM5.77, calling the group its preferred pick in the telecoms sector alongside TELEKOM MALAYSIA BHD [].
Axiata rose as much as 3 sen or 0.6% to RM5.01 this morning before ending the first session at RM4.99, up 1 sen or 0.2% from Wednesday's close.
Company Name: AXIATA GROUP BERHAD
| Research House: OSK | Price Call: BUY | Target Price: 5.77 |
KUALA LUMPUR: Axiata Group Bhd has no immediate plans to increase its stake in Indian-associate IDEA Cellular Ltd beyond a 20% threshold, the company said, denying reports that it is looking to raise its stake to 25%.
'We have no current plans of increasing our stake in IDEA,' Axiata said in an emailed reply on Thursday, Aug 18.
It confirmed, though, that the group had just increased its holdings in IDEA by 0.9% through open market purchases, raising holdings to 19.98%.
Citing unnamed sources familiar with the deal, The Economic Times of India reported Axiata may be looking to raise its stake in IDEA to 25%, once it receives permission from IDEA's main shareholders, the Aditya Birla group.
IDEA shares rose as much as 3.23% to INR97.5 intra-morning following the report. The stock was trading at INR95.95 at 1pm Kuala Lumpur time.
Axiata had paid an average of INR103 for the additional 0.9% stake in IDEA, OSK Research wrote in a note this morning, citing shareholder filings on the Bombay Stock Exchange. That's 9.05% above the INR94.45 that IDEA closed on Aug 17.
'A small stumbling block' to Axiata increasing its holdings in IDEA beyond 20% could be the approval needed from the Adita Birla Group, OSK Research wrote in the note this morning, ahead of the statement from Axiata to deny the news report.
The additional stake purchase from the market 'would serve to average down the implied cost of its investment in India's third largest mobile operator', OSK Research added in the note, pointing out that Axiata had written down the value of its 19.1% stake in IDEA to INR120 in 4QFY2010.
OSK retained a 'buy' on Axiata and a target price of RM5.77, calling the group its preferred pick in the telecoms sector alongside TELEKOM MALAYSIA BHD [].
Axiata rose as much as 3 sen or 0.6% to RM5.01 this morning before ending the first session at RM4.99, up 1 sen or 0.2% from Wednesday's close.
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