Axiata Group, the largest wireless carrier in Malaysia in terms of revenue, is considering various strategies to decrease its debt. As of March 2023, Axiata's debt was estimated at 36.7 billion ringgit (US$7.9 billion), compared to 25.7 billion ringgit (US$5.5 billion) at the end of 2019.
This increase in debt is attributed to the company's expansion abroad, which has involved acquiring telecom towers in the Philippines and a broadband and cable TV provider in Indonesia.
To address this issue, CEO Vivek Sood plans to sell stakes in certain businesses and list its technology units, aiming to alleviate the debt associated with the overseas expansion.
The CEO mentioned that one option for Axiata is to sell stakes in its wireless tower unit, Edotco Group. They are also considering refocusing PT Link Net in Indonesia, a company that provides cable television and high-speed broadband internet services, to become a fixed broadband infrastructure company. A stake sale may follow this refocusing.
PT XL Axiata, a mobile operator, is expected to become a provider of mobile, fixed and content services. The CEO also discussed the merger of Celcom Axiata and Digi Telecommunications that took place last year.
In Malaysia, Axiata will focus on combining the operations of the two companies, now known as CelcomDigi, to achieve synergies. Axiata, which was established in 2008, has 150 million subscribers for its services in Southeast Asia and Pakistan.
