Axiata Completes Divestment of stake in Thailand In Line with Strategic Direction
Kuala Lumpur, 23 December 2010. In line with its strategy to focus on mobile communications business, Axiata Group Berhad (“Axiata”) has completed the sale of its entire stake of 18.9% in Samart Corporation Public Company Limited (“Samart”) to existing shareholders, Mr. Charoenrath Vilailuck and Mr. Watchai Vilailuck. The stake, which Axiata has held since 1997, was transacted for a total cash consideration of USD34.8 million.
Samart, which has interests in various subsidiaries focusing on mobile multimedia, ICT solutions and services and technology related businesses, represents one of Axiata's non mobile investments. Axiata still holds its 24.4% stake in Samart i-Mobile, focusing on mobile, multimedia and international business.
Dato' Sri Jamaludin Ibrahim, President & Group Chief Executive Officer said “This divestment reinforces our commitment to focus on our primary business of mobile communications. As with our announcement in July on the disposal of our stake in Multinet, Pakistan, which the parties are in the midst of completing, this transaction reflects our strategic direction of focusing on our core areas.”
The divestment of Samart is not expected to have any material financial impact on Axiata's consolidated earnings for the financial year ending 31 December 2010.
Axiata is one of the largest Asian telecommunication companies, focused on high growth low penetration emerging markets. Axiata has controlling interests in mobile operators in
Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India and Indonesia are amongst the fastest growing markets in the world. In addition, the Malaysian-grown holding company has stakes in non-mobile telecommunication operations in Thailand.
The Group's mobile subsidiaries and associates operate under the brand name ‘Celcom' in Malaysia, ‘XL' in Indonesia, ‘Dialog' in Sri Lanka, ‘Robi' in Bangladesh, ‘HELLO' in Cambodia, ‘Idea' in India, ‘M1' in Singapore and ‘MTCE' in Iran (Esfahan).
The Group's, including its subsidiaries and associates, has over 130 million mobile subscribers in Asia. The Group revenue for 2009 was RM13.1 billion. The Group provides employment to over 25,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia.
Axiata was awarded the Frost & Sullivan 2009 and 2010 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 for its operations in multiple Asian markets.