0214 GMT - Axiata Group subsidiary Dialog's proposed merger with Airtel Lanka could shave 7% of the group's 2025 net profit, UOB Kay Hian analysts Chong Lee Len and Ku Wei Xiang say in a note. That's because Axiata's stake in Dialog will be diluted to 73.8% from 82.3%, with Bharti Airtel holding 10.4% post merger, they note. Dialog's revenue meanwhile could rise 8% in 2024, with earnings likely to fall by less than 5% amid integration costs. Airtel Lanka is operating at a loss due to a lack of economies of scale, they say, adding that the enlarged Dialog entity could deliver Ebitda contributions to Axiata. UOB KH keeps a hold call on Axiata with a MYR2.50 target. Shares are 1.2% higher at MYR2.63. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
April 23, 2024 22:15 ET (02:15 GMT)
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