Mitsui to Acquire Stake in Axiata's Data and AI Unit for $58 Million
By Ying Xian Wong
Japan's Mitsui & Co. will acquire a stake in Axiata Group's data and artificial intelligence unit for $58 million, valuing the company at $550 million.
The Malaysian telecommunications company said Thursday that the deal will give Mitsui an effective 12.69% stake in Axiata Digital & Analytics, while also increasing its stake in the unit's holding company, Axiata Digital Services, to 20% from 3.29% previously.
Axiata said the investment will help ADA broaden its digital reach and advance digital and data transformation in the region.
"We are confident that broadening our strategic partnership will further enhance ADA's expertise in AI and data analytics with Mitsui's substantial business capabilities derived from a global portfolio," said Vivek Sood, chief executive of Axiata. "This is a significant step towards generating greater, long-term value for our stakeholders and in driving continued growth within this space."
ADA's other shareholders include Softbank and Sumitomo, Axiata said.
Toru Matsui, Mitsui's senior executive managing officer, said the investment would strengthen the company's strategy of developing digital marketing business clusters in Asia.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
November 02, 2023 05:11 ET (09:11 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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