Axiata to divest 89% stake in Multinet Pakistan for $1

The financial performance of Multinet has been deteriorating over the last few years with the internet service provider (ISP) amassing losses of Rs754 million for the financial year ended December 31st, 2017

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LAHORE: Axiata Group Bhd is contemplating to divest its entire 89 percent shareholding in Multinet Pakistan (Private) Ltd for a token amount of $1 on a cash-free and debt-free basis.

According to a filing on the bourse in Malaysia, the entity informed its unit Axiata Investments (Labuan) Ltd (AIL) had reached a share-purchase agreement with Adnan Asdar Ali, who presently has a minority shareholding of 11 percent in Multinet, reported The Sun Daily.

Axiata said the financial performance of Multinet had been deteriorating since the last few years with the internet service provider (ISP) amassing losses of Rs754 million for the financial year ended December 31st, 2017.

Also, Axiata Group stated Multinet’s contribution to its business and financial performance is insignificant.

Furthermore, the group assured this transaction won’t have any material impact on the group’s consolidated net assets, gearing and consolidated earnings for FY18 ending December 31st 2018.

Multinet Pakistan (Private) Limited operates as a data and voice communication provider for managed service solutions to carrier and enterprise customers in Pakistan.

It offers international telecommunication services ranging from wholesale voice/bandwidth services to enterprise data services.

The company was founded in 1996 and is headquartered in Karachi, Pakistan. Multinet Pakistan (Private) Limited operates as a subsidiary of Axiata SPV1 (Labuan) Limited.