Axiata strives to raise our shareholder value by striking a balance between
short-term profitability and long-term growth.
| Type | Announcement |
| Subject | OTHERS |
| Description | AXIATA GROUP BERHAD ("AXIATA") - INVESTMENT BY DIALOG AXIATA PLC |
|
INTRODUCTION
Following the notification by Dialog Axiata PLC (“Dialog”) to the Colombo Stock Exchange (“CSE”) today, we are pleased to announce that Dialog, a 83.3% subsidiary of Axiata, had on 9 December 2012 entered into an Investment Agreement (“IA”) for the acquisition of 26% entry stake in Digital Commerce Lanka (Pvt) Ltd (“DCL”) at a purchase consideration of USD1.59 million (“DCL Investment”). INFORMATION ON THE COMPANIES Dialog Dialog was incorporated in August 1993 and commenced operations in 1995. The stated capital of Dialog is LKR28,103,913,435/-. Dialog, listed on the Colombo Stock Exchange, is the largest mobile telecommunications service provider in Sri Lanka supporting over 7 million subscribers and operating 2.5G and 3/3.5G mobile communications networks supporting the very latest in multimedia and mobile internet services. Dialog has the distinction of being the first 3G operator in South Asia to commence commercial operations. Its local coverage spans all provinces of Sri Lanka, while international roaming is provided in over 200 destinations. DCL DCL was incorporated on 29 November 2012 as an e-commerce operator. The stated capital of DCL is currently LKR207,995,000/- and held by the shareholders of Anything (Pvt) Ltd (“Anything”), a leading e-commerce operator in Sri Lanka. SALIENT TERMS OF THE INVESTMENT IN DCL The purchase consideration for the DCL Investment of USD1.59 million shall be satisfied entirely in cash and non-cash item such as the e-commerce business of the Dialog Group. Alongside the IA, Dialog has also entered into a Shareholders’ Agreement (“SA”) with the shareholders of DCL. The terms and conditions of SA, among others, provide opportunities for Dialog to increase its stake in DCL. Moving forward, DCL will subsume the brand properties and business operations of Anything, and the e-commerce business of the Dialog Group including ibuy.lk and tradenet.lk. DCL will establish and operate a unified platform for internet based commerce and trade through the aggregation of the afore-referenced e-commerce properties. DCL will also aggregate several new platforms and services envisaged for introduction in the future. SOURCE OF FUNDS The DCL Investment will be funded through internally generated funds. FINANCIAL EFFECTS The DCL Investment does not have any effect on the issued and paid-up share capital and earnings of Axiata and is not expected to have any material effect on the gearings and net assets of the Axiata Group for the financial year ending 31 December 2012. APPROVALS OF SHAREHOLDERS The DCL investment is not subject to the approval of the shareholders of Axiata. DIRECTORS’ AND MAJOR/SUBSTANTIAL SHAREHOLDERS’ INTEREST None of the Directors, major shareholders of Axiata and/or persons connected to them has any direct or indirect interest in the DCL Investment. The notification on DCL Investment released by Dialog to CSE is provided below. This announcement is dated 10 December 2012. |
|
| Company Name | AXIATA GROUP BERHAD |
| Stock Name | AXIATA |
| Date Announced | 10 Dec 2012 |
| Category | General Announcement |
| Reference No | AG-121210-12F45 |
Attachments