Axiata sees better dividend from deleveraging, merger plans
KUALA LUMPUR: Axiata Group Bhd expects to see better dividend prospects from its operating companies as the group advances its deleveraging strategy and merger integration plans across key markets.
Group chief executive officer and managing director Vivek Sood noted that the group is pursuing monetisation plans involving its tower assets and Indonesia-based Link Net.
Vivek said proceeds from any monetisation exercise would primarily be channelled towards reducing holding company debt, which could further strengthen its balance sheet and support future dividend growth.
“If we are able to do the monetisation which we have been planning to do in 2026 for the towers as well as Linknet, we should be able to further pay down our holding company debt.
“This means that whatever the cost of servicing the debt in the holding company comes down substantially.You would feel a clear translation of the dividend flow from the operating companies back to the shareholders,” he said at the virtual media conference today.
Meanwhile, Vivek said the group is also accelerating dividend repatriation from operating companies to reduce exposure to currency depreciation risks.
Vivek said its Sri Lankan operations have shifted to quarterly dividend declarations instead of annual payouts to allow faster remittance of funds back to the holding company.
“We do not have to wait for the dividend till the end of the year and run the risk of exchange deterioration,” he said.
In addition, Vivek said the group expects merger integration efforts in Malaysia and Indonesia to further strengthen earnings contribution over the next two years.
He has guided for annualised synergy savings of between RM700 million and RM800 million in Malaysia, alongside US$300 million to US$400 million in Indonesia by 2027.
“And if those synergies are going to translate into better earnings, I think we should be able to get better dividend flow coming from these markets.
“So I think we are reasonably confident of growing that dividend projection which we have in place,” he added.
© New Straits Times Press (M) Bhd
المصدر: New Straits Times
