KUALA LUMPUR (Feb 13): Axiata Group Bhd said a dilution of its shareholding in its Indian associate Idea Cellular Ltd is expected to result in an estimated loss on dilution of RM151.5 million for the financial year ending Dec 31, 2018 (FY18).
The dilution of equity interest to 18.1% from 19.7% resulted from Axiata’s decision not to participate in a preferential issuance of Idea shares recently.
The preferential issuance was part of Idea’s capital-raising exercise to facilitate its merger with Vodafone India Ltd. Idea is India’s third largest wireless operator, while Vodafone is the country’s second biggest telco.
In a filing with Bursa Malaysia, Axiata said the estimated loss on dilution from the non-participation in the preferential share issuance is also expected to have a material impact on Axiata’s earnings for FY18.
Axiata’s share price closed three sen or 0.54% higher at RM5.61 today for a market capitalisation of RM50.76 billion.