Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Axiata sells 10% stake in Cambodia’s Smart

Axiata sells 10% stake in Cambodia’s Smart

A man speaks on a mobile phone in front of a Smart retail store in Phnom Penh.
A man speaks on a mobile phone in front of a Smart retail store in Phnom Penh. Pha Lina

Axiata sells 10% stake in Cambodia’s Smart

Axiata Group sold a 10 percent stake of its Cambodian subsidiary Smart Axiata to Japanese group Mitsui Co Ltd to form a strategic partnership and further the firm’s activity in the Kingdom, according to a company release on Friday.

Mitsui purchased the stake in the local telecom for $66 million, putting the value of the company at $724 million when considering cash received from dividends, the release said. It added that Mitsui had a call option to purchase a further 10 percent stake within 12 months as part of the agreement.

Following the transaction, Axiata will continue to hold a controlling 82.5 percent stake in Smart.

Thomas Hundt, CEO of Smart, said in the release that the new partnership served to further the company’s digital strategy in Cambodia, while helping it expand its reach in the country.

“Smart’s unique strength in data and digital leadership, network coverage and value-added offerings will be greatly enhanced by Mitsui’s involvement as Smart continues to evolve towards a digital lifestyle brand,” he said.

After investing $967 million in its operations in the Kingdom between 2008 to 2016, Smart is expecting to invest an additional $80 million in 2017, mainly to expand its 4G network in the country, Axiata said in the announcement.

Tan Sri Jamaludin Ibrahim, president and group CEO of Axiata, said Mitsui’s expertise will help Smart accelerate its technological adoption and expand into new areas of development.

“This strategic partnership with Mitsui will support the growth efforts of Smart, particularly in the areas of digital services and IoT [Internet of Things] and our vision of becoming a new generation digital champion,” he said.

“With Mitsui in the fold, Smart will be in a position to offer enhanced digital services that would leapfrog Cambodia’s digital economy.”


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of

  • One Australian, one Cambodian killed in explosion at military base

    Updated: 5:20pm, Friday 16 March 2018 An Australian tourist and a Cambodian soldier were killed in an explosion on Thursday afternoon at an army base in Cambodia’s Kampong Speu province. The Australian, whom the government initially identified as a technical demining expert in his 40s, and

  • Peeling back layers of prehistory in Battambang

    When the man passed away, he had not yet reached 50. He belonged to a tribe that had settled near the Sangker River in Battambang province, likely cultivating the fields and raising animals. On the side, they hunted for boars, and even turtles, one of which