Axiata falls 2.70% on Idea Cellular-Vodafone merger news

PETALING JAYA: Axiata Group Bhd fell as much as 2.70% to RM4.31 at early trade today, on news that the Idea Cellular- Vodafone India merger may be concluded by the beginning of the third quarter of this year, as just two more approvals are required.
At 11.40 am, the stock was trading at RM4.40 with some 905,000 shares changing hands.
Speaking to reporters after the group’s AGM yesterday, Axiata president and group CEO Tan Sri Jamaludin Ibrahim said that a foreign direct investment approval and a nod from the department of telecommunication are required before India’s second and third largest telco player can merge to become a single entity.
Axiata fell into the red in the first quarter ended March 31, after registering a net loss of RM147.41 million against a net profit of RM239.02 million a year ago due to the share of losses reported by Idea.
Excluding Idea and foreign exchange impacts, Axiata is cautiously optimistic on its financial performance for this year.