Dilution Of Shareholding In Idea To Cost Axiata RM151.5 Million

Last update: 13/02/2018

KUALA LUMPUR, Feb 13 (Bernama) -- The dilution of Axiata Group Bhd's shares in its associate company, Idea Cellular Ltd (Idea), following its non-participation in the latter's move to issue 326.63 million new equity shares, is expected to result in Axiata facing an estimated loss of RM151.5 million for the financial year ending Dec 31, 2018.

"Following the non-participation by Axiata, the allotment of Idea's shares on preferential basis to several entities has resulted in the dilution of Axiata's shareholding in Idea from 19.7 per cent to 18.1 per cent," Axiata said in a filing to Bursa Malaysia today.

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.