Axiata seeks buyers for overseas units - report

News Wireless Asia 14 SEP 2016
Axiata seeks buyers for overseas units - report

Malaysia’s Axiata Group plans to reduce states in some of its overseas operations. With these planned asset sales, Axiata Group could raise up to USD 700 million, Bloomberg reports, citing unnamed people familiar with the matter. According to the same source, Axiata is currently seeking a buyer for its 11 percent stake in Indonesian unit XL Axiata, which has a market value of USD 2.2 billion. The Group also wants to sell a 30 percent stake in Sri Lanka unit Dialog Axiata and Cambodian subsidiary Smart Axiata, the sources added.

Axiata’s total debt has increased by 55 percent since end-2014 to MYR 21.5 billion (approximately USD 5.2 billion) in June 2016. Axiata plans to use part of the proceeds from the divestments to cut borrowings, the unnamed sources also said.   

Axiata said in response to the article that it continuously reviews various strategic options to enhance shareholders’ value. Since mid-2015, Axiata has been exploring options, including rebalancing its portfolio and reviewing its shareholdings across subsidiaries, the company said in a statement.

Categories:

Mobile

Companies:

Axiata,  XL Axiata,  Dialog

Regions:

Asia

Tags:

Corporate strategy, M&A buyouts & divestments

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