Axiata Group is planning to sell all of its shares in Multinet Pakistan after reaching a share-purchase agreement. The company held 89% shares in Multinet Pakistan Private Ltd, with the remaining 11% held by shareholder Adnan Asdar Ali.
The Malaysian telecommunications conglomerate is selling its shares for a total of US$1 on a cash-free and debt-free basis.
The company suffered a loss of Rs 754 million during the previous financial year which ended on 31 December 2017. This loss in profitability, along with the declining financial performance of Multinet in the previous years, contributed to the the group’s decision to divest its stakes.
Not just this, the Pakistani Internet Service Provider’s (ISP) financial contribution to the Axiata Group is trivial. Axiata Group maintained that the step will not have any impact on the overall earnings and assets for the financial year ending on 31 December 2018.
Multinet Pakistan was founded in 1996. Headquartered in Karachi, it offers telecommunications services, information and communication solutions to enterprises, and worked as a subsidiary of Axiata Group.