Axiata unit to sell 89% shareholding in Multinet Pakistan

KUALA LUMPUR: Axiata Group Bhd’s (Axiata) wholly owned unit Axiata Investments (Labuan) Ltd (AIL) has entered into an agreement with Adnan Asdar Ali (AAA) for the divestment of AIL’s 89% stake in Multinet Pakistan Pte Ltd for US$1 on a cash-free and debt-free basis.

AAA is the current shareholder of the remaining 11% stake in Multinet, Axiata said in a filing with Bursa Malaysia.

Multinet provides telecommunication and electronic media services such as Internet design, development and implementation of networks, including a wide range of non-mobile telecommunications services.

Axiata said that for the last few years, Multinet’s financial performance has been declining with accumulated losses of 754 million Pakistani rupees (about RM25.64mil) for the financial year ended Dec 31, 2017.

“Accordingly, Multinet’s contribution to Axiata’s financial and business performance is immaterial,” it said, adding that the proposed divestment was in the best interests of Axiata.

It said the proposed divestment was subject to, among others, the fulfilment of regulatory and third-party approvals.

“It is not expected to have any material effect on Axiata’s consolidated net assets (NA), NA per share, gearing and consolidated earnings for the financial year ending Dec 31, 2018,” it said. — Bernama