Axiata halts Tikona acquisition talks

10 Apr 2012

Malaysian telecoms group Axiata has reportedly dropped out of talks regarding the possible acquisition of Indian broadband wireless access (BWA) operator Tikona Digital Networks, the Business Standard reports. It is understood that Axiata ended the negotiation process after it failed to overcome differences related to the valuation of the operator, as well as due to the continued uncertainty over matters of telecom policy in India, particularly in the wake of the cancellation of 2G licences by the Supreme Court. The report cites unnamed sources which are claiming that Tikona’s promoters had valued the company at USD1 billion, and it is thought that there was little leeway regarding the possibility of driving the price down.

As noted in TeleGeography’s GlobalComms Database, Tikona acquired BWA concessions for five of India’s telecoms circles – Gujarat, Himachal Pradesh, Rajasthan, Uttar Pradesh (East) and Uttar Pradesh (West) – at a cost of INR10.58 billion (USD230 million) in an auction which concluded in June 2010.

India, Axiata, Tikona Infinet