Apr 1, 2010

Axiata (TP RM4.15): To announce first dividend payout since Telekom demerger

Axiata Group Bhd  (AXIATA MK, Hold, TP: RM4.15)  will be announcing its dividend policy by 3Q2010 en route to its maiden dividend payout since being demerged from Telekom Malaysia Bhd  (T MK, Hold, TP: RM3.54)  in April 2008.Axiata’s move to pay dividends will be financed by its sale of an 18% stake in its Indonesian subsidiary PT XL Axiata Tbk, which is expected to raise between RM1.83bn to RM2.02bn. Axiata is inclined to use the proceeds for consistent dividends and lowering its borrowings. CEO Datuk Sri Jamaludin Ibrahim said there will be divestment of non-core businesses  in Iran, Thailand and Pakistan. (Malaysian Reserve)