Axiata eyes stronger dividends as it weighs asset monetisation strategy

KUALA LUMPUR, May 26 — Axiata Group Bhd is continuing to evaluate monetisation pathways for several portfolio assets as part of its broader value realisation strategy.

Axiata chief financial officer Nik Rizal Kamil said the group’s value elimination work extends beyond tower unit Edotco and also involves assets such as LinkNet and its digital telecommunications businesses.

“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.

“Whilst we do that, we will continue with the value realisation work about increasing the value for these assets. As and when we can make the necessary announcement, we will do so and go out to the market,” he told reporters at Axiata’s 34th annual general meeting media briefing yesterday.

Nik Rizal said that deleveraging remains the key priority for any future monetisation of assets identified under the group’s medium-term value realisation strategy.

He said the primary objective will be to reduce its holding company debt, which the group has been successfully reducing via liability management.

“The priority will always be in terms of deleveraging. The strategy would also help free up cash flows and support progressively higher annual dividend payments to shareholders,” said Nik Rizal.

Group chief executive officer and managing director Vivek Sood said Axiata’s underlying financial performance remained steady in the first quarter of 2026 (1Q 2026), excluding foreign exchange movements.

“If you look at 1Q as the starting point, leaving aside the forex movement, which can go up or down, 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,” he said.

Vivek noted that the planned monetisation exercises involving the group’s tower assets and LinkNet in 2026 are expected to strengthen Axiata’s balance sheet through further debt reduction at the holding company level.

“If we can do the monetisation which we have been planning in 2026 for the towers as well as LinkNet, we should be able to further pay down our holding company debt, which means the cost of servicing the debt comes down substantially,” he said.

Vivek said that lower debt servicing costs would enable clearer translation of dividend flows from operating companies back to shareholders.

He also said that Axiata remains in the merger integration phase in both Malaysia and Indonesia, with synergies expected to contribute 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.

“If these synergies result in improved earnings, we should see an increase in dividend flow from these markets,” said Vivek.

The group remains reasonably confident of achieving its dividend projections despite ongoing macroeconomic and geopolitical uncertainties.

“The current environment of macro challenges and uncertainty in the global geopolitical environment is something we have to be cautious of,” he said. — Bernama

المصدر: Malay Mail