KUALA LUMPUR, Feb 14 — Axiata Group Bhd’s shares slipped in early trade today on news of a dilution of its shareholding in Indian associate, Idea Cellular Ltd, resulting in it facing an estimated loss of RM151.5 million for the financial year ending Dec 31, 2018.
As at 10am, Axiata’s share was two sen lower to RM5.59 with 64,700 units transacted.
In a filing to Bursa Malaysia, it said the dilution of equity interest to 18.1 per cent from 19.7 per cent followed Axiata’s decision to not participate in a preferential issuance of Idea shares recently.
Idea, India’s third largest wireless operator, is an associate company of Axiata held through Axiata Investments 1 (India) Ltd and Axiata Investments 2 (India) Ltd.
The new shares would have a face value of 10 Indian rupees each at an issue price of 99.50 rupees per Idea share, aggregating to 32.5 billion rupees (100 rupees = RM6.142) on preferential basis to several entities under the preferential issuance of Idea shares to the National Stock Exchange of India Limited. — Bernama