Axiata Group Bhd has divested its entire 89% stake in Multinet Pakistan (Private) Ltd to its second largest shareholder, Adnan Asdar Ali, for US$15 million.
Axiata said on Monday, July 19 the divestment to Adnan, who owns 11% of Multinet, was part of its strategy to focus on mobile communications.
It said Multinet, which provides a wide range of non-mobile telecommunications services with a focus on the Business to Business (B2B) segment of the market, represents one of Axiata’s non-mobile investments.
A facility based operator with a 100% digital fibre optic network across Pakistan, Multinet supports fibre-optic connectivity, long distance international (LDI) originations /terminations and co-location services.
Axiata president & group chief executive officer Datuk Seri Jamaludin Ibrahim said Axiata had 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. Since our initial investment in 2005, Multinet has grown into an established fibre infrastructure company, the first company to launch a 5,000 km long nationwide fibre network," he said.
Under the agreement, Adnan will also repay Axiata the shareholders advances provided to Multinet amounting to PKR973.3 million, as part of the agreement.
In addition, AA will also obtain the release of all guarantees and financial support provided to Multinet in relation to banking facilities totaling US$65.0 million.
The divestment of Multinet is not expected to have any material financial impact on Axiata’s consolidated earnings for the financial year ending Dec 31, 2010.
Written by Joseph Chin
The Edge Malaysia
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