Hello and Smart Mobile to merge

Hello Axiata and Smart Mobile to Merge

A Clear No 2 with better coverage for 5 million subscribers

Phnom Penh, 13 December 2012 - Axiata Group Berhad (Axiata), one of Asia’s largest telecommunications companies, today announced the strategic merger of Hello Axiata Company Limited (“Hello”) and Latelz Company Limited (“Latelz”), which operates under the Smart Mobile brand name.

The merger will create the 2^nd largest mobile telecommunications company in Cambodia with five million subscribers.

Hello Axiata Chief Executive Officer Simon Perkins said the time was right for consolidation in the mobile telecommunications market in Cambodia.

“Currently there are nine players in the market and we believe through consolidations it will come down to three to five operators. The time is right for us to consolidate and we at Smart Mobile and Hello are proud to be leading the way in Cambodia.”

Perkins said the merger would make it possible for the combined entity to enjoy better economies of scale, while eliminating duplication of costs. It will also facilitate synergies and the sharing of best practices between Hello Axiata and Smart Mobile.

“We are confident that the merger will put us on a stronger footing and it will allow us to grow from strength to strength,” said Perkins.

Latelz’s Chief Executive Officer Thomas Hundt said the combined entity would be able to offer more innovative and affordable mobile voice and mobile data products and services to its five million customers. Smart Mobile brings to this deal an efficient operation, a highly competent work force, a strong brand presence and a sizeable asset base and spectrum. Hello, on the other hand, has to offer a loyal customer base and the strength and scale of the Axiata Group.

“We are excited with the prospects this enlarged within-network community can offer our customers. This will include, amongst others, an enhanced level of customer service and one of the biggest mobile networks of Cambodia in terms of coverage and capacity. We will also have one of the most extensive sales and distribution channels in Cambodia,” he said.

“We expect the merger to be finalised latest by the end of first quarter 2013. Until then, it will be business as usual at both Hello and Smart Mobile without disruptions to the services that our customers currently enjoy.” Hundt explained.

About Hello Axiata

Hello Axiata Company Limited, a subsidiary of Axiata Group Berhad (Axiata), is one of Cambodia’s largest mobile telecommunications network.

Hello has been at the forefront of innovation in the mobile industry in Cambodia since the late 90’s, propelling it to a level of technology on par with the developed world. The Company operates 2G, 2.5G, 3G, 3.75G mobile services, supporting the very latest in multimedia and mobile internet services as well as international roaming across more than 147 countries. The company has extensive network coverage in all cities, provinces and main trunk roads of Cambodia.

About Latelz

Latelz Co., Ltd. is owned by international telecom holding firm Timeturns Holdings Limited based in Cyprus, which owns several telecommunication operators and licenses within Asia and Africa. Latelz owns licenses to act as mobile telecommunication operator and internet provider in the Kingdom of Cambodia.

Latelz operates its mobile telecommunication network using GSM/GPRS/EDGE technology on both GSM900 and GSM1800 frequency bands as well as 3.75G UMTS/HSPA+ under the brand name Smart Mobile. Smart Mobile’s 2G network coverage stretches out nationwide to all 24 provinces, the 3.75G network is available in all 24 provinces of Cambodia too, serving more than 3 million subscribers at present. Smart Mobile employs presently more than 450 people including local and foreign experts.

Source: Hello.com.kh