KUALA LUMPUR: Axiata Group Bhd’s subsidiary, Axiata Investments (Singapore) Ltd has disposed its entire stake in Singapore-listed M1 Ltd to Konnectivity Pte Ltd for RM1.65 billion.
In an exchange filing, Axiata Group said its 23.7 per cent stake disposal in M1 would allow the company to gain about RM126.5 million.
“We have made the decision to accept the offer due to the need for capital reallocation and new priorities in line with its vision to be the Next Generation Digital Champion by 2022 and the investments required to achieve it,” Axiata said.
The group said it preferred not to be a minority investor in a potentially privatised company, making the investment illiquid.
Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said it needed to undertake a major reprioritisation and make better use of its capital to chart a new chapter in line with its new vision while also further enhancing shareholders’ value.
“It is actually not an easy decision for us. We like our investment in M1 and believe in its long-term future. I thank all our fellow shareholders, partners, management and staff of M1 for contributing to the success of the company and for all the collaborations with Axiata over a decade,” he said.
Konnectivity is owned by Keppel Corp Ltd and Singapore Press Holdings Ltd.
Axiata’s investment in M1 started in 2005 and the latter had steadily contributed to the group’s growth over the years with dividends amounting to RM1.1 billion in the last 10 years.