KUALA LUMPUR (Aug 27): Axiata Group Bhd (KL:AXIATA) on Thursday flagged a possible delay in monetising its infrastructure assets, which includes its tower business edotco Group Sdn Bhd. Asset disposals are a part of its efforts to cut debt. 

Group chief executive officer and managing director Vivek Sood said that while asset disposals are a key strategy, the exercise might be delayed, not because they’re not ready to move forward, but because the market isn’t responding favourably at the moment.

“Around the value illumination and monetisation strategy, while we may be keen to do that, I think the market environment is not very conducive for investors investing because they are very watchful of the risks in the global environment,” Vivek said at an earnings briefing on Thursday.  

“So, I think that might have timelines getting delayed over efforts on monetisation,” he added.  

This year’s global environment has been unstable, mainly due to uncertainty caused by US tariffs. Although the situation has eased, it still creates doubts that could slow down economic growth.

Vivek said the company is open to discussions but shared no details, stating they will make announcements as required by regulations.

When asked about reports that Khazanah and the Employees Provident Fund may buy Axiata’s 63% stake in its tower business, Sood declined to comment, saying he couldn’t speak on anything speculative and would update the market when necessary.

The group has identified asset monetisation as a lever to pare debt. Quarter-on-quarter, group borrowings came down by RM5.13 billion to RM17.7 billion at end-June, while holding company debt was trimmed by RM1.4 billion to RM7.9 billion.

“A continuing effort and part of the monetisation of assets is to reduce our holding company debt. I think it's very important that when we say we are a yield company or a high-dividend company, that’s only possible if leakages at the group level are reduced. That’s [asset monetisation] one clear strategy we have to reduce the holding company debt risks,” Sood noted.

On the entry of a new shareholder into Boost Holdings, Vivek said it is moving forward but still needs regulatory approval. He didn’t give a specific timeline, though he previously said it could be completed by the end of 2025.

Boost is 77.76%-owned by Axiata, while Great Eastern Holdings Ltd wholly owned unit Great Eastern Digital Pte Ltd holds a 19.89% stake, and Mitsui & Co Ltd 2.33% equity interest.

The fintech outfit houses the group’s joint venture (JV) digital bank Boost Bank Bhd with RHB Bank Bhd (KL:RHBBANK). Boost owns a 60% stake in the JV, while RHB Bank holds the remaining 40%.

The digital bank is one of five digital bank licensees in Malaysia. It commenced operations in June 2024. Loan book stood at RM167 million at end-June, versus RM17 million in early January.

Axiata reported net profits of RM270.82 million, or 2.9 sen per share, for the three months ended June 30, 2025 (2QFY2025), as it booked RM306.71 million forex gains on financing activities during the quarter.

Revenue, meanwhile, slipped 11% year-on-year to RM2.97 billion as currencies of the group's operating companies depreciated against its reporting currency in ringgit.

A dividend of five sen per share was also declared, with dates of entitlement and payment to be announced later.

At the time of writing, shares in Axiata were down two sen or 0.76% at RM2.62, valuing the group at RM24.07 billion.

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