Axiata to sell loss-making Pakistan unit

1 min readUpdated Jun 3, 2025Jul 17, 201810:33 AM

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Axiata Group Bhd is planning to sell its entire 89% stake in Multinet Pakistan (Private) Ltd for a sum of US$1 on a cash-free and debt-free basis.

The group told the stock exchange that its unit Axiata Investments (Labuan) Ltd (AIL) had entered into a share purchase agreement with Adnan Asdar Ali, who currently holds the remaining 11% stake in Multinet.

It noted that Multinet’s financial performance has been declining for the last few years with accumulated losses of PKR754 million (RM25.64 million) for the financial year ended Dec 31, 2017.

Accordingly, the group said Multinet’s contribution to its financial and business performance is immaterial.

Axiata assured that the exercise will not have any material effect on the group’s consolidated net assets, gearing and consolidated earnings for the financial year ending Dec 31, 2018.

Multinet is engaged in the business of providing telecommunication and electronic media services including internet services, design, development, implementation of networks including a wide range of non-mobile telecommunications services with a focus on the business-to-business (B2B) segment of the market.

Axiata gained 2.7% or 11 sen at RM4.17 with 5.75 million shares being traded.

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What this means

Axiata's token US$1 sale of its Multinet Pakistan unit is a pragmatic cleanup, offloading a consistently loss-making asset that contributes negligibly to its bottom line. While its previous Asian expansions, unlike Chipotle's new market entries in South Korea and Singapore, have focused on telecom infrastructure, this divestment suggests a strategic pivot towards shedding underperformers rather than aggressive expansion. This move reduces operational drag and frees up management focus, applying pressure on rivals to review their own non-performing regional assets. The primary risk is market perception if this signals broader instability, though the group assures no material financial impact. We will watch for any subsequent announcements regarding other minor subsidiaries in its next financial report.

Maria Santos · Retail News Asia newsroom

Questions & Answers

Who is purchasing Axiata's stake in Multinet Pakistan?

Adnan Asdar Ali, who already owns the remaining 11% stake in Multinet, has entered into a share purchase agreement to acquire Axiata's 89% holding. The transaction is being conducted on a cash-free and debt-free basis.

What is the reason for Axiata selling its stake in Multinet Pakistan?

Multinet's financial performance has been declining for several years, accumulating losses of PKR754 million (RM25.64 million) by the end of 2017. Its contribution to Axiata's overall financial and business performance is considered immaterial.

What kind of services does Multinet Pakistan provide?

Multinet is involved in providing telecommunication and electronic media services, including internet services and network implementation. It offers a range of non-mobile telecommunications services, primarily focusing on the business-to-business (B2B) market segment.

Will this sale significantly impact Axiata Group's financial position?

Axiata has stated that the sale will not materially affect the group’s consolidated net assets, gearing, or consolidated earnings for the financial year ending 31 December 2018. The unit's contribution was considered immaterial.

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