Investors

We wish to announce that Axiata Investments (Labuan) Limited (“AIL”), a wholly owned subsidiary of Axiata Group Berhad (“Axiata”) had today entered into a Share Purchase Agreement with Adnan Asdar Ali (“AA”) for the divestment by AIL of its entire 89.0% stake in Multinet Pakistan (Private) Limited (“Multinet”) for a sum of USD1.0 on a cash free and debt free basis (“Proposed Divestment of Multinet”). AA is the current shareholder of Multinet holding the remaining 11.0% stake in Multinet.

The above is pursuant to Axiata’s earlier announcement of the Quarterly Results for the quarter ended 31 December 2017 released on 23 February 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. A facility-based operator with fibre optic network across Pakistan, Multinet supports fibre-optic connectivity, Long Distance International (LDI) originations / terminations and co-location services. For the last few years, Multinet’s financial performance has been declining with accumulated losses of PKR754.0 million (equivalent to approximately RM25.64 million) for the financial year ended 31 December 2017. Accordingly, Multinet’s contribution to Axiata’s financial and business performance is immaterial.

The Proposed Divestment of Multinet is subject to amongst others, the fulfillment of regulatory and third-party approvals and is not expected to have any material effect on Axiata’s consolidated Net Assets (“NA”), NA per share, gearing and consolidated earnings for the financial year ending 31 December 2018.

None of the Directors and major shareholders of Axiata and/or persons connected to them has any direct or indirect interest in the Proposed Divestment of Multinet. The Board of Directors of Axiata, after having considered all aspects is of the opinion that the Proposed Divestment of Multinet is in the best interests of Axiata.

This announcement is dated 13 July 2018.