By Chester Tay
Malaysia-based Axiata Group Bhd. is divesting a 22% stake in Boost Holdings Sdn. Bhd., its digital financial services business, to Oversea-Chinese Banking Corp. subsidiary Great Eastern Holdings Ltd. for $70 million.
Axiata said it will hold the remaining stake in Boost via subsidiary Axiata Digital Services Sdn. Bhd.
Proceeds from the transaction will go toward funding Axiata Digital's digital financial services business over the next year, Axiata and Great Eastern said in a joint statement Thursday.
Boost's businesses include e-wallets, microfinancing and microinsurance.
In a press conference Thursday, Axiata Digital Chief Executive Khairil Abdullah said the transaction values Boost at $320 million.
The CEO said the ultimate goal for Boost is to own a digital bank license in Malaysia, and the company is looking for strategic partners to join a digital-banking venture.
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