KUALA LUMPUR: Axiata Group Bhd
is exiting Myanmar after its subsidiary, Edotco Investments (Labuan) Ltd, signed a share purchase agreement (SPA) to sell its entire 87.5 per cent stake in Edotco Investments Singapore Pte Ltd for US$150 million (RM713 million).
Axiata said in a filing with Bursa Malaysia today that the decision to exit Myanmar was due to deteriorating macroeconomic and operating conditions in the country.
"Capital from the divestment, in line with Axiata’s commitment to maintaining a strong balance sheet and enhancing shareholder value, will be reallocated to reduce debt.
"The divestment, subject to regulatory approvals, is expected to be completed within 12 months from the date of the SPA and is not expected to have a material impact on Axiata’s consolidated net assets, net assets per share, gearing or consolidated earnings for the financial year ending Dec 31, 2024,” it said.
The company also said the board of directors of Axiata, after considering all aspects, is of the opinion that the divestment is in the best interests of Axiata.
"None of Axiata’s directors, major shareholders or related parties have any direct or indirect interest in the transaction,” it said. - Bernama
