DiGi may be in spotlight after Telenor’s success in Myanmar
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DiGi may be in spotlight after Telenor’s success in Myanmar
DiGi may be in spotlight after Telenor’s success in Myanmar
Business & Markets 2013
Written by Cindy Yeap of theedgemalalysia.com
Friday, 28 June 2013 10:35
KUALA LUMPUR: DIGI.COM BHD [] could be in the spotlight today on news that its parent, Telenor ASA, edged 10 others including Axiata Group Bhd, to win one of two coveted Myanmar telecommunications licences yesterday.
Analysts have previously said DiGi could have greater push to raise dividend payments if Telenor’s cash needs goes up with the win in Myanmar.
DiGi has said it is considering the business trust structure to see if its adoption improves its capital structure while allowing it to pay higher dividends.
Still, there are those who reckon that Telenor may want to delay paying out more dividends until it gets greater clarity on whether it can raise its equity holdings in DiGi above the current 49% cap.
Myanmar’s ministry of communications and information TECHNOLOGY [] has named Telenor and Qatar-based operator Ooredoo as winners for the two nation-wide telecoms licences.
In a statement that appeared in the ministry’s website yesterday evening, the Telecommunication Operator, Tender Evaluation and Selection Committee said a consortium consisting of France Telecom-Orange and Marubeni Corp has been named as the back-up applicant in the event one of the two successful applicants does not fulfil the post-selection requirements contained in the invitation to tender.
Only five of the 11 technical submissions met the minimum 500- point score for their monetary bid to be considered.
Winners need to cover 75% of Myanmar within five years or risk forfeiting a performance bond.
Apart from Axiata, others that lost the bid include Singapore Telecommunications Ltd and billionaire George Soros-backed Digicel, which also partnered Myanmar-based and Singapore-listed Yoma Strategic Holdings Ltd.
“Axiata is disappointed not to have won the bid. However, it was an honour to have been shortlisted given the avid interest in the market from global players,” an Axiata spokesman said in a statement yesterday, without saying if it is pursuing other avenues to enter Myanmar.
One analyst said Axiata may be able to pay more dividends now that it does not have to spend that much money in Myanmar. He also pointed out that other avenues of entering Myanmar likely involves the need to take on a local partner.
Axiata closed unchanged at RM6.61 while DiGi shed 4 sen or 0.85% to RM4.66 yesterday.
This article first appeared in The Edge Financial Daily, on June 28, 2013.
Business & Markets 2013
Written by Cindy Yeap of theedgemalalysia.com
Friday, 28 June 2013 10:35
KUALA LUMPUR: DIGI.COM BHD [] could be in the spotlight today on news that its parent, Telenor ASA, edged 10 others including Axiata Group Bhd, to win one of two coveted Myanmar telecommunications licences yesterday.
Analysts have previously said DiGi could have greater push to raise dividend payments if Telenor’s cash needs goes up with the win in Myanmar.
DiGi has said it is considering the business trust structure to see if its adoption improves its capital structure while allowing it to pay higher dividends.
Still, there are those who reckon that Telenor may want to delay paying out more dividends until it gets greater clarity on whether it can raise its equity holdings in DiGi above the current 49% cap.
Myanmar’s ministry of communications and information TECHNOLOGY [] has named Telenor and Qatar-based operator Ooredoo as winners for the two nation-wide telecoms licences.
In a statement that appeared in the ministry’s website yesterday evening, the Telecommunication Operator, Tender Evaluation and Selection Committee said a consortium consisting of France Telecom-Orange and Marubeni Corp has been named as the back-up applicant in the event one of the two successful applicants does not fulfil the post-selection requirements contained in the invitation to tender.
Only five of the 11 technical submissions met the minimum 500- point score for their monetary bid to be considered.
Winners need to cover 75% of Myanmar within five years or risk forfeiting a performance bond.
Apart from Axiata, others that lost the bid include Singapore Telecommunications Ltd and billionaire George Soros-backed Digicel, which also partnered Myanmar-based and Singapore-listed Yoma Strategic Holdings Ltd.
“Axiata is disappointed not to have won the bid. However, it was an honour to have been shortlisted given the avid interest in the market from global players,” an Axiata spokesman said in a statement yesterday, without saying if it is pursuing other avenues to enter Myanmar.
One analyst said Axiata may be able to pay more dividends now that it does not have to spend that much money in Myanmar. He also pointed out that other avenues of entering Myanmar likely involves the need to take on a local partner.
Axiata closed unchanged at RM6.61 while DiGi shed 4 sen or 0.85% to RM4.66 yesterday.
This article first appeared in The Edge Financial Daily, on June 28, 2013.
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