Logo of Phnom Penh Post newspaper Phnom Penh Post - Japan firm takes another 10pct of telecom Smart

Japan firm takes another 10pct of telecom Smart

Content image - Phnom Penh Post
Axiata Group has sold a 10 percent stake in its Cambodian subsidiary Smart Axiata to Mitsui Co. Heng Chivoan

Japan firm takes another 10pct of telecom Smart

Malaysia-based Axiata Group has sold another 10 percent stake in its Cambodian subsidiary Smart Axiata to Japanese group Mitsui Co Ltd. The Japanese firm now holds 20 percent of the local telecommunications giant.

In May last year, it sold 10 percent of Smart to Mitsui Co. That stake was valued at $66 million, and Mitsui reserved the right to purchase another 10 percent of the firm within a year.

The latest sale has reduced Axiata’s majority interest in Smart Axiata from 82.5 percent to 72.5 percent, with Southern Coast Ventures owning the remaining 7.5 percent.

In a press release obtained by The Post on Wednesday, Smart Axiata said Mitsui’s additional stake in Smart will act as a catalyst to transform the Kingdom into a digital, knowledge and information-based society.

Expertise

“Mitsui’s expertise in various digital portfolios will enable Smart to further strengthen its leadership and continue evolving its lifestyle and entertainment brand beyond being a traditional telecommunications player in Cambodia,” it says.

It adds that there will be no significant change in the company’s management, strategy, or operations after the deal.

Contacted yesterday, Cambodian Ministry of Commerce spokesperson Seang Thay said the deal did not require approval from the ministry, but the company needs to inform the government about shareholder updates.

Telecommunication Regulator of Cambodia spokesman Im Vutha on Wednesday said he hadn’t received any information from the company about the new shareholders, but he said he thought Mitsui should have a positive impact on the industry.

“We hope that with stronger financial support, the telecommunications operator will strengthen the quality of its service for the benefit of Cambodians,” he said.

MOST VIEWED

  • Kingdom may hire Turkish power ship

    Cambodia is considering negotiating with Turkey to hire a 200MW-capacity power ship to meet electricity demands as the country faces an ongoing electrical shortage, according to the prime minister. Speaking to garment workers in Pursat province on Wednesday, Prime Minister Hun Sen said Electricite du

  • Woman who scaled Cambodia’s three highest peaks eyes Everest

    One of the very few Cambodian women to have successfully reached the Kingdom’s three highest peaks is now eyeing Malaysia’s tallest mountain, Mount Kinabalu, and potentially even the world’s tallest straddling Nepal and China, Mount Everest. While in many Western countries it

  • EDC tackles power shortfall

    Electrcite Du Cambodge (EDC) on Monday issued a statement updating the public on its efforts to tackle insufficient electricity supplies during the ongoing dry season. Reductions in electricity prices have resulted in a steady increase in consumers in the Kingdom, while local and international investors

  • Cheap, clean and efficient: The firm leading Cambodia’s solar revolution

    Sitting in her bright and airy 17th floor office, Rithya Menon, Okra Smart Solar’s lead firmware engineer, checks the frequently updating data telling her everything about how well their community services are operating. “I saw in the data that there was a problem with