Axiata’s share price dip after edotco cancels Pakistan deal
In this article (5)
Axiata Group Bhd’s share price fell as much as 11 sen this morning after its subsidiary edotco Group Sdn Bhd canceled a US$940 million deal in Pakistan.
The stock fell as much as 11 sen to a low of RM4.50 this morning from its last adjusted closing price of RM4.61. At 11.06am, the stock fell 1.3% or 6 sen to RM4.55 with 584,700 shares traded.
Trading in Axiata’s securities was halted for an hour from 9am earlier before resuming at 10am.
On Monday, edotco said it will not go ahead with the acquisition of 13,000 towers from Pakistan Mobile Communications Ltd, which would have made it the eight largest independent tower company globally.
The US$940 million (RM3.9 billion) deal, which was in the works for more than a year, was terminated due to the non-fulfilment of a number of conditions within the timeframe stipulated under the sale and purchase agreement.
Questions & Answers
Q.What was the initial financial impact on Axiata Group Bhd’s share price after the deal was cancelled?
What was the initial financial impact on Axiata Group Bhd’s share price after the deal was cancelled?
Axiata Group Bhd’s share price fell by as much as 11 sen this morning. This brought the stock down to a low of RM4.50 from its last adjusted closing price of RM4.61.
Q.Why did edotco Group Sdn Bhd cancel the acquisition of towers from Pakistan Mobile Communications Ltd?
Why did edotco Group Sdn Bhd cancel the acquisition of towers from Pakistan Mobile Communications Ltd?
The deal was terminated because a number of conditions outlined in the sale and purchase agreement were not met within the stipulated timeframe. Edotco Group Sdn Bhd decided not to proceed with the acquisition.
Q.What was the value of the cancelled deal in Pakistan?
What was the value of the cancelled deal in Pakistan?
The cancelled acquisition deal was valued at US$940 million. This figure converts to RM3.9 billion.
Q.How would the acquisition of 13,000 towers have impacted edotco's global standing?
How would the acquisition of 13,000 towers have impacted edotco's global standing?
The acquisition would have made edotco Group Sdn Bhd the eighth largest independent tower company globally. This would have significantly expanded its operational scale.
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