Axiata Group Bhd is planning to sell its entire 89% stake in Multinet Pakistan (Private) Ltd for a sum of US$1 on a cash-free and debt-free basis.
The group told the stock exchange that its unit Axiata Investments (Labuan) Ltd (AIL) had entered into a share purchase agreement with Adnan Asdar Ali, who currently holds the remaining 11% stake in Multinet.
It noted that Multinet’s financial performance has been declining for the last few years with accumulated losses of PKR754 million (RM25.64 million) for the financial year ended Dec 31, 2017.
Accordingly, the group said Multinet’s contribution to its financial and business performance is immaterial.
Axiata assured that the exercise will not have any material effect on the group’s consolidated net assets, gearing and consolidated earnings for the financial year ending Dec 31, 2018.
Multinet is engaged in the business of providing telecommunication and electronic media services including internet services, design, development, implementation of networks including a wide range of non-mobile telecommunications services with a focus on the business-to-business (B2B) segment of the market.
Axiata gained 2.7% or 11 sen at RM4.17 with 5.75 million shares being traded.