Axiata share price down slightly after buying stake in Sri Lankan data centre firm
In this article (5)
Axiata Group Bhd’s share price fell 0.18% this morning following news that its unit is acquiring a 35% stake in data centre company Digital Reality (Private) Ltd (DRPL) for 262.5 million Sri Lankan rupees (RM6.55 million) cash to form a data centre business in Sri Lanka.
At 11.08am, Axiata stood at RM5.48 with 882,800 shares changing hands.
The group yesterday said Dialog Broadband Networks (Private) Ltd (DBN) has entered into a deal with St Anthony’s Property Developers (Private) Ltd (SAPD) for the stake acquisition.
DBN, which is Sri Lanka’s second largest fixed telecommunications provider, is a wholly owned subsidiary of Dialog Axiata Plc which in turn is an 83.32% subsidiary of Axiata.
SAPD is a member of St Anthony Group and is the main developer of Sri Lanka’s largest privately held IT park, “Orion City”.
Questions & Answers
Q.Which specific entity within the Axiata group is making this acquisition?
Which specific entity within the Axiata group is making this acquisition?
Dialog Broadband Networks (Private) Ltd (DBN) is acquiring the 35% stake in Digital Reality (Private) Ltd (DRPL). DBN is a wholly owned subsidiary of Dialog Axiata Plc, which is itself an 83.32% subsidiary of Axiata.
Q.Who is selling the 35% stake in Digital Reality (Private) Ltd?
Who is selling the 35% stake in Digital Reality (Private) Ltd?
St Anthony’s Property Developers (Private) Ltd (SAPD) is selling the 35% stake. SAPD is a member of the St Anthony Group and is the main developer of the 'Orion City' IT park in Sri Lanka.
Q.What is the total value of this 35% stake acquisition in Sri Lankan rupees and Malaysian ringgit?
What is the total value of this 35% stake acquisition in Sri Lankan rupees and Malaysian ringgit?
The total value of the 35% stake acquisition is 262.5 million Sri Lankan rupees. This amount is equivalent to RM6.55 million in Malaysian ringgit, which Axiata's unit is paying in cash.
Reader pulse
Was DBN's data centre investment a good move?
16,220 votes so far