CK Hutchison Holdings Ltd is weighing a combination of its Indonesian telecommunications business with that of Malaysia’s Axiata Group Bhd, Bloomberg reported on Monday, citing people with knowledge of the matter.
CK Hutchison, the ports-to-telecoms arm of retired billionaire Li Ka-shing’s businesses, informally explored a combination of its Indonesian wireless business with the Malaysian carrier’s Indonesian unit, PT XL Axiata, the report said. The companies have not begun any substantive negotiations, it added.
Hutchison did not immediately respond to a request seeking comment.
Axiata did not confirm or deny the report, but said, “Axiata has created significant value uplift and attractiveness for its operations and as evidenced in the last one year, we have attracted a lot of suitors to partner with us and seeking to acquire our assets, including Telenor, Mistui (ADS), Sumitomo (ADA) among others.”
Last week, Telenor and Axiata ended talks to create a telecoms joint venture. Executives said Axiata was discussing deals with other parties and considering an initial public offering of its tower business.