KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Axiata Group Bhd has announced a buyback offer of up to US$200 million for its outstanding medium-term notes (MTNs) due in 2050, issued by its subsidiary Axiata SPV5 (Labuan) Ltd. The MTNs, originally valued at US$1 billion, are listed on the Singapore Exchange. This buyback initiative is part of Axiata’s strategy to reduce gross debt, lower interest costs, and optimize its capital structure by using surplus cash to retire and cancel the purchased notes.
Key Details:
Buyback Offer: Axiata is offering eligible holders the opportunity to sell back their MTNs, with the offer set to expire on September 27, 2024. The terms of the offer are detailed in the tender offer memorandum.
Strategic Financial Management: The buyback is aimed at reducing Axiata’s debt burden and improving its financial health, reflecting the company’s focus on managing interest costs and enhancing its overall capital structure.
Market Reaction: Following the announcement, Axiata's share price increased by 3.66% to RM2.55, giving the company a market capitalization of RM23.41 billion.
This move underscores Axiata’s commitment to maintaining a robust financial position while providing flexibility in managing its long-term debt obligations.
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