KUALA LUMPUR (Aug 3): Axiata Group Bhd may sell a portion of its stakes in more profitable global operating units in Sri Lanka, Cambodia and Indonesia to raise funds, which could finance the group's capital expenditure (capex) requirements.

Public Investment Bank Bhd analyst Eltricia Foong said the possible divestments might also help to cut Axiata's debt. 
 
"We believe Axiata is likely to divest part of its stakes in more profitable overseas units (Sri Lanka, Cambodia and Indonesia), in order to raise funding for future capex and to pare down borrowings, following the call-off of the planned disposal of M1. 

"We are projecting Axiata’s FY17F earnings to decline by about 7% YoY, as we believe its performance would be dragged by the challenges facing Celcom and associates in Singapore and India," Foong wrote in a note.

At the time of writing, Axiata had not issued a statement in response to Public Investment's speculation.

At Bursa Malaysia today, Axiata shares rose 11 sen or 2% to RM4.80 at 4:11pm, to become the bourse's sixth-largest gainer. The counter saw some three million shares traded.