KUALA LUMPUR, Feb 21 — Axiata Group Bhd is allocating RM6.6 billion in capital expenditure (capex), mainly to expand the group’s network and tower.
Chief financial officer Vivek Sood said most of the capex would be used to expand its footprint in Indonesia as well as expanding 4G coverage in Bangladesh.
“About RM400 to RM500 million would be used to fund the business of our subsidiary, edotco Group Sdn Bhd,” he told reporters at the group’s financial year 2019 results briefing here today.
The capex would be funded through internally generated fund.
Meanwhile, Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said the group is evaluating edotco’s readiness to ensure that it has the right size for further growth before pursuing its listing exercise.
“Operationally we are ready, but we are not in a rush because Axiata has about RM4 billion in cash and we can easily fund the company.
“We do have an expansion plan, but right now we can fund it internally, so we are not under pressure to do initial public offering,” he added.
On its digital banking licence, the telecommunications provider said it is currently engaging with Bank Negara Malaysia.
“We are providing our comments and engaging with Bank Negara Malaysia (BNM) and hopefully we can form the partnership that needed to make the submission in due course,” said deputy group chief executive officer Datuk Mohd Izzaddin Idris.
To date, about 11 parties are pursuing Axiata for the partnership.
In December 2019, BNM announced plans to issue up to five digital bank licences after releasing its licensing framework, which is set to be finalised by the first half of this year. — Bernama
