* Focus on UAE, Nigeria, Egypt, Saudi Arabia - analysts
* Sale part of push to trim underperforming units
* More division sales seen
DUBAI, Sept 20 (Reuters) - Etisalat will use the
proceeds from a $510 million stake sale in Indonesia to boost
networks in core markets, the Gulf's No. 2 telecoms operator
said on Thursday.
The company, which has interests spanning Africa, Asia and
the Middle East, sold a 9.1 percent stake in Indonesian mobile
firm PT XL Axiata last week, retaining a 4.2 percent
holding.
"Proceeds will be used to fund further growth in next
generation networks in our core growth markets and roll out
additional services," Etisalat said in a statement emailed in
response to questions from Reuters.
The company did not say which countries it considered
"core", but they likely included the United Arab Emirates -
source of about 71 percent of revenues in the second quarter -
and the lucrative markets of Saudi Arabia, Egypt and Nigeria.
The Indonesian sale, which followed an exit from India, was
seen as part of a broader push to trim back on underperforming
units.
Etisalat's new management team - it has installed a new
chairman, chief executive and heads of finance, strategy and
marketing in the past 18 months - has said more divisions could
be sold following a sustained profit drop.
Analysts have named African subsidiary Atlantique Telecom as
one possible sale candidate.
"Atlantique operates in small markets with multiple players,
so it is not particularly attractive, but Etisalat could find a
buyer if it sells Atlantique as a whole," said Petr Molik, chief
financial officer at MENACORP in Abu Dhabi.
"Etisalat isn't under any pressure to sell assets quickly -
it has a strong cash position, so its units won't be offloaded
at fire-sale prices."
Selling assets that have failed to add much to the bottom
line will narrow Etisalat's focus and aid attempts to reclaim
some of domestic rival du's 46.5 percent market share in
the UAE.
"Du was not expected to win such a share so easily and so
quickly - Etisalat will find it difficult to maintain domestic
margins if it tries to be aggressive against du," added Molik.
"The focus is now on the UAE, but Etisalat won't retreat
entirely."
Etisalat and affiliate Mobily have already
launched long-term evolution, or LTE, next-generation networks
in the UAE and Saudi Arabia, but LTE-enabled smart phones are in
their infancy and take-up has been slow.
By the end of June there were 12,500 LTE subscriptions in
Saudi Arabia and 9,500 in the UAE, Informa Telecoms and Media
estimates.
Egypt has yet to issue LTE licences, but Etisalat and rival
Vodafone Egypt have launched trials, Informa said.
(Reporting by Matt Smith; Editing by Andrew Heavens)