KUALA LUMPUR,. Public Investment Bank Bhd has reiterated a “neutral” call on telecommunications giant Axiata Group, on the prospect of its unit selling a 89 per cent shareholding in Multinet Pakistan Pte Ltd (Multinet Pakistan).
Axiata Group’s wholly-owned subsidiary, Axiata Investments (Labuan) Ltd (AIL), has entered into an agreement with Adnan Asdar Ali (AAA) for the divestment of AIL’s 89 per cent stake in Multinet Pakistan for US$1 on a cash-free and debt-free basis, it said.
In a note today, the research firm quoted Axiata as saying AAA is the current shareholder of the remaining 11 per cent stake in Multinet.
Axiata said for the last few years, Multinet’s financial performance had been declining with accumulated losses of PKR754 million (about RM25.6 million) for the financial year ended Dec 31, 2017.
Public Investment Bank Bhd has set a target price of RM5.00.
As at 10.25am, Axiata’s stock declined one sen to RM4.16 with 20,800 shares changing hands.