Herbert Smith Freehills has advised Axiata Group Berhad (“Axiata”) on the strategic merger in Cambodia of Hello Axiata Company Limited (“Hello”) and Latelz Company Limited (“Latelz”) which operates under its main Smart Mobile (“Smart”) brand name. The transaction has an implied enterprise value of US$180 million. Axiata now hold a 90% stake in the combined entity and emerge as one of the largest operators in Cambodia in terms of subscribers and revenue.
Axiata is one of the largest Asian telecommunications companies. It has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. The group’s mobile subsidiaries and associates operate under the brand name “Celcom” in Malaysia, “XL” in Indonesia, “Dialog” in Sri Lanka, “Robi” in Bangladesh, “Hello” in Cambodia, “Idea” in India and “M1” in Singapore.
The Herbert Smith Freehills team was led by partners Veronica O’Shea and Brian Scott who were supported by senior TMT consultant Mark Robinson, senior associates Alexis Papasolomontos and Rodney Edgerton and associates Rebecca Cochrane, Anna Morgan and Lucy Pegler.
Veronica O’Shea, client relationship partner for Axiata, commented:
“We are very pleased to have supported Axiata to become one of the market leaders in Cambodia.”
“Telecommunications in Southeast Asia has been very active in the last 12 months, in growing markets like Cambodia, where unique subscriber penetration is still below 40%, and in terms of consolidation, towers and digital business. Having a specialist technology, media and telecoms team in Singapore, covering Southeast Asia and working with the wider team in Hong Kong, Tokyo, Australia and EMEA, means Herbert Smith Freehills is very well placed to capitalise on this activity.”
Axiata is a longstanding client of Herbert Smith Freehills. Recently, Herbert Smith Freehills has also advised Axiata on its approximately US$135 million syndicated loan for the renewal of a mobile licence in Bangladesh and the issuance of US$300 million Hong Kong and Labuan listed notes.
