Malaysia's Axiata Group has divested its entire 89% stake in Pakistan wholesale fiber provider Multinet Pakistan for just $1, exiting the loss-making operation.
The sale to Adnan Asdar Ali, the shareholder of the remaining 11% stake in the company has been made on a cash free and debt free basis, Axiata said in a filing.
Multinet is a facilities based operator with a fiber network across Pakistan that supports fibre-optic connectivity, Long Distance International (LDI) originations / terminations and co-location services.
Announcing the divestment, Axiata said Multinet's financial performance has been deteriorating over the past few years, with accumulated losses of around 754 million rupees ($6.2 million).
As a result Multinet has been making an “immaterial” contribution to Axiata's financial and business performance, and the sale is not expected to have a material impact on Axiata's consolidated net assets or gearing for the financial year.
Meanwhile Axiata Group has sold a further 10% stake in Cambodia's Smart Axiata to Japanese trading company Mitsui & Co for about 100 billion yen, the Nikkei Asian Reviewreported.
The sale brings Mitsui's stake in Dialog Axiata up to 20%, following Mitsui's initial investment of $66 million for a 10% stake in May 2017.