MobileOne expects 'growth'

MobileOne expects 'growth'

Bloomberg, Jakarta

MobileOne Ltd. the smallest of Singapore's three cell-phone operators, said it expects benefits from its sale of a majority shareholding to Telekom Malaysia Bhd. and Khazanah Nasional Bhd.

Telekom, the nation's biggest phone operator, and Malaysian government investment company Khazanah own 24 percent in MobileOne through their venture SunShare Investments Ltd.

"There will be good growth synergies happening probably over the next 12 to 18 months," MobileOne Chief Executive Neil Montefiore said in an interview at the 3GSMAsia trade show in Singapore.

"It will strengthen our uniqueness in regional, global alliances. It will differentiate M1 from our competitors."

Kuala Lumpur-based Khazanah, which owns more than 24 companies with a combined market value of about US$16 billion, is expanding overseas investments to raise returns.

Telekom has also been looking abroad as growth slows and competition gets fiercer in Malaysia, where about half of the nation's 26 million people own cellular phones.

MobileOne shares fell 0.5 percent to S$1.97 as of 12:24 p.m. in Singapore. The stock has gained 8.2 percent this year, compared with the 11 percent advance of the benchmark Straits Times Index.

MobileOne and Telekom are part of the Asia Mobility Initiative, an alliance of seven regional phone companies with a combined 50 million subscribers.

Kuala Lumpur-based Telekom also owns stakes in PT Excelcomindo Pratama, Indonesia's third-largest cellular company, and Sri Lanka's biggest mobile-phone operator, Dialog Telekom Ltd.

MobileOne prefers to adopt an alliance strategy than to invest overseas for now, Montefiore said.

"We always look at opportunities overseas but really we'll not invest unless we can see good shareholder value," Montefiore said.

"We certainly welcome Excelcomindo and other Telekom Malaysia investments into the alliance."

Telekom and Khazanah in August said they would pay S$260.8 million ($154 million) to raise their combined holding in MobileOne to 17.7 percent.

Telekom owns 80 percent of SunShare and Khazanah 20 percent.