Axiata has no plans to downsize regional operations

13 Oct 2016
00:00

Axiata Group has no plans to downsize its operations in any of its eight markets, according to CEO Jamaludin Ibrahim.

Last months, reports suggested that the company is considering selling stakes in its Indonesian, Cambodian and Sri Lankan operations, leading to speculation that the company may seek to exit the markets.

But Kamaludin said Axiata Group is a long-term investor in each of its operating countries, the Khmer Timesreported. Regardless of if the company does plan to reduce its stakes in the regional operations, the group will maintain majority ownership.

He also told Sri Lanka's Daily News that if the company does decide to reduce its 83.3% stake in Sri Lanka's Dialog Axiata, money raised will be reinvested back into Sri Lanka for another venture.

The Daily News quotes Axiata's group chief strategy officer repeating the same sentiment for funds raised through any divestment of Cambodia's Smart Axiata.

According to last month's reports, Axiata was said to be seeking buyers for stakes worth up to $700 million in the regional subsidiaries. The reports indicated that the potential sales are part of efforts to reduce the group's debt, although Axiata executives are declining to comment on this aspect.

But Kamaludin said Axiata Group invests around $600 million to $700 million per year in expanding its regional operations.

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