Axiata exits M1, gains RM126 mil from deal

Axiata Group Berhad via its wholly-owned subsidiary, Axiata Investments (Singapore) Limited has accepted the voluntary conditional general offer by Konnectivity Pte. Ltd, for the Group’s entire stake in M1 Limited.

Axiata stands to gain a total cash consideration of approximately RM1.65 billion at the offer premium price of SGD2.06 from this sale.

The Group will effectively divest its 28.7 percent stake in M1 and exit its investment in Singapore with an estimated gain of RM126.5 million from this deal.

Axiata’s investment in M1 commenced in 2005 and the Company had steadily contributed to the Group’s growth over the years with dividends amounting to RM1.1 billion in the last 10 years.

Over that period, it had generated very healthy dividend yields of approximately seven percent over the years.

Axiata says through their press communique, that 'given the financial returns as well as its strategic benefits, Axiata has expressed its satisfaction with its M1 investment,'.

“It is actually not an easy decision for us. We like our investment in M1 and believe in its long-term future. At the same time, we need to undertake a major reprioritisation," says Tan Sri Jamaludin Ibrahim, President & Group Chief Executive Officer of Axiata.