By Yantoultra Ngui 
 

KUALA LUMPUR, Malaysia--Axiata Group Bhd. (6888.KU), Malaysia's largest mobile-phone operator by market value, said Thursday it might consider divesting its stake in Idea Cellular Ltd. (532822.BY), following the Indian mobile operator's proposed merger with the India business of Vodafone Group PLC (VOD.LN).

"In the long run, we will be considering possible exit," Group Chief Executive Jamaludin Ibrahim told reporters at an earnings briefing, saying that a merger would dilute Axiata's stake in Idea Cellular to less than 10% from 16% currently. The stake is estimated to be worth some $1 billion.

"Our role as a strategic partner will be disappeared, not entirely but Vodafone is another strategic partner and there cannot be two telcos running the show," Mr. Jamaludin added.

Vodafone last year agreed to merge its Indian business with Idea Cellular, a move that would create India's largest telecoms business. The merger is expected to be completed by the first half of this year.

 

Write to Yantoultra Ngui at yantoultra.ngui@wsj.com

 

(END) Dow Jones Newswires

February 22, 2018 07:37 ET (12:37 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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