September 28, 2021

Axiata Shares Receive Less Exciting News

 Axiata Group Bhd's share price showed a less than encouraging reaction to the latest announcement made by the group.

There are rumors that it will divest its 5% stake in its Indonesian -listed subsidiary PT XL Axiata Tbk (XL) to Ferrymount Investments Ltd (FIL).

The implementation will involve an estimated value of around 1,440 billion rupiah equivalent to RM423.5 million or 2,700 rupiah (0.79 sen) per share.

However, as of 12.28pm, Axiata's share price rose 0.5% to RM4.05 with a market capitalization of around RM37.15 billion.

Meanwhile, the proposed disposal will showcase Axiata’s stake in XL will change to 61.5% from 66.5% at the moment.

However, JF Apex Securities took a positive impact and is confident the agreement signed will enable XL and Axiata to work with a wider range of partners.

Among them are FIL, Procap Partners Ltd and Tiga Investment Pte Ltd and at the same time it is able to access their expertise, experience in the field of digital and technology services.

Add JF Apex Securities, through a collaborative relationship with ProCap and Tiga Investment with the Indonesian digital ecosystem, XL will be actively involved and further expand digital services.

JF Apex Securities estimates that the implementation will boost Axiata's total cash to RM7.4 billion.