Malaysia-based mobile firm Axiata Group Bhd. said Monday it plans to sell its non-core Pakistan unit Multinet Pakistan (Private) Ltd. in a bid to concentrate on its core-business.
Axiata said in a midday exchange filing that it will sell its 89% stake in Multinet to Adnan Asdar Ali for $15 million in cash. Adnan currently holds 11% in Multinet.
“Axiata has always expressed its intention to exit its non-core businesses and concentrate on its primary business of mobile communications. The divestment of Multinet reflects this new strategic direction, allowing us to focus on our core areas,” Axiata Chief Executive Jamaludin Ibrahim said.
Multinet operates a digital fiber optic network in Pakistan with a focus on the business-to-business segment of the market. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran.
Axiata said Adnan will also repay Axiata the shareholders’ advances provided to Multinet amounting to PKR973.3 million, as part of the agreement.
The divestment is not expected to have any material impact on Axiata’s earnings, it added.
Via Total Telecom