Kuala lumpur: Axiata Group Bhd is actively evaluating monetisation pathways for several of its portfolio assets as part of a broader strategy to enhance value realisation. Axiata's Chief Financial Officer, Nik Rizal Kamil, highlighted that this initiative is not limited to their tower unit Edotco but also extends to other assets like LinkNet and the group's digital telecommunications businesses.
According to BERNAMA News Agency, Nik Rizal emphasized the group's commitment to maintaining its value illumination efforts across various assets. "With regards to the value realisation and pathway for monetisation, it does not just impact Edotco, it also impacts other assets like LinkNet and also our digital telco," he stated during Axiata's 34th annual general meeting media briefing. The group is poised to make market announcements as needed while focusing on increasing asset value.
Deleveraging remains a key priority for Axiata, with a primary objective of reducing holding company debt through effective liability management strategies. Nik Rizal noted that reducing debt would free up cash flows and support the possibility of progressively higher annual dividend payments to shareholders.
Axiata's Group CEO and Managing Director, Vivek Sood, reported that the company's underlying financial performance was stable in the first quarter of 2026, excluding foreign exchange fluctuations. "The underlying performance has been around RM400 million. If you look at that as steady-state earnings for Axiata, then we are talking about nearly going to RM1 billion plus earnings in the year," Vivek said. He anticipates that planned monetisation exercises involving tower assets and LinkNet in 2026 will further strengthen the balance sheet through additional debt reduction.
Vivek also mentioned that lower debt servicing costs would facilitate clearer dividend flows from operating companies to shareholders. Additionally, Axiata is in the merger integration phase in Malaysia and Indonesia, with expected synergies contributing positively to earnings from 2027 onwards. "In 2027, we expect to achieve run-rate savings of approximately RM700 million to RM800 million in Malaysia and around US$300 million to US$400 million in cost synergies from Indonesia," he explained, noting that improved earnings could lead to increased dividend flows.
Despite ongoing macroeconomic and geopolitical uncertainties, Axiata remains reasonably confident in achieving its dividend projections. "The current environment of macro challenges and uncertainty in the global geopolitical environment is something we have to be cautious of," Vivek concluded.