KUALA LUMPUR (Feb 18): Axiata Group Bhd shares rose 1.27% this morning after the group decided to sell its 28.7% stake in Singapore-listed M1 Ltd to Keppel Corp Ltd and Singapore Press Holdings Ltd (SPH) at an offer price of S$2.06 per share or RM1.65 billion in total.
At 9.25am, Axiata rose 5 sen to RM3.99 with 370,400 shares done.
The telco will gain approximately RM126.5 million from the divestment, which was held via its wholly-owned unit, Axiata Investments (Singapore) Ltd (AISL), to Konnectivity Pte Ltd, a special purpose vehicle formed by Keppel and SPH, Axiata said in a statement.
“Axiata has made the decision to accept the offer due to the need for capital reallocation, new priorities in line with its vision to be the next generation digital champion by 2022 and investments required to achieve that. The group also prefers not to be a minority investor in a potentially privatised company, making the investment illiquid,” Axiata said.