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Malaysian operator responds to report alleging it plans to cut holdings in overseas businesses in order to raise $700 million.
Axiata this week confirmed it is exploring whether to reduce its stakes in some overseas businesses in order to reduce debt.
"Since the middle of last year, Axiata has been exploring options to further optimise its balance sheet and group structure, potentially including, but not limited to, the portfolio rebalancing and review of shareholding across subsidiaries," the Malaysia-based telco said, in a statement on Tuesday.
The comment was issued in response to a report by Bloomberg earlier this week, which claimed that Axiata plans to cut its stakes in various subsidiaries in deals that could raise up to US$700 million (€623.4 million).
Sources cited in the report said Axiata is looking to sell approximately 11% of its Indonesian arm XL Axiata, as well as up to 30% of its Sri Lankan business Dialog Axiata, and 30% of its Smart Axiata operation in Cambodia.
A chunk of the proceeds will be used to pay down debt, which according to Bloomberg reached $5.2 billion at the end of June.
"In the event any such transactions are entered into, Axiata will make all necessary disclosures at the appropriate time. Until such time, any such reports are speculative," Axiata said.
