axiata group berhad | annual report 2015
152
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
5.
INCORPORATIONS, ACQUISITIONS, MERGERS, DISPOSALS AND DILUTIONS OF INTERESTS (CONTINUED)
(a) Incorporation, acquisitions, and dilutions of interests during the financial year (continued)
(xiv) Acquisition of 75.00% equity interest in Digicel Asian Holdings Pte Ltd (“DAH”) (continued)
Acquisition related costs of RM4.4 million have been charged to the consolidated other operating costs during the financial year.
The impact of acquisition of DAH and its subsidiary had it occurred on 1 January 2015 and from the date of acquisition, was not material
to the consolidated financial statements.
In addition to the SPA, EIL also entered into a Put & Call Option Agreement with YSH Finance Limited (“Yoma”) which is the NCI of DAH
for the acquisition of 25.00% interest in DAH together with shareholders loan, owned by Yoma as disclosed in Note 19(d) to the financial
statements.
(xv) Incorporation of Axiata Investments (UK) Limited (“Axiata UK”)
On 14 December 2015, Axiata UK was incorporated with an issued and paid-up share capital of GBP1 divided into 1 ordinary share. The
nature of business to be carried by Axiata UK is as an investment holding company.
The incorporation did not have significant impact to the Group during the financial year.
(xvi) Investment in Headstart (Private) Limited (“Headstart”)
On 4 September 2014, Dialog entered into an investment agreement with Headstart to purchase its redeemable convertible bonds which
will mature on 31 December 2021, at a nominal value of SLR85.0 million.
On 27 November 2015, Dialog transferred its investment in redeemable convertible bonds amounting to SLR60.0 million to DHL by way
of a deed of assignment. On 31 December 2015, DHL converted SLR20.0 million of its investment in redeemable convertible bonds into
equity shares of Headstart which is representing 26.00% of the issued and paid up capital of Headstart. Accordingly, Headstart became an
associate of the Group.
The investment had no significant impact to the Group during the financial year.
(xvii) Dilution on equity interest in M1 Limited (“M1”)
During the financial year, the Group’s equity interest in M1, held through Axiata Investments (Singapore) Limited, a wholly-owned subsidiary
of the Company, decreased from 28.50% to 28.32% (2014: 28.74% to 28.50%) following the issuance of new ordinary shares under M1’s
ESOS.
The Group recognised a loss on dilution of equity interest amounting to RM11.5 million (2014: RM13.6 million) during the financial year.
(xviii) Dilution on equity interest in Idea Cellular Limited (“Idea”)
On 11 June 2014, Idea issued 223,880,597 ordinary shares under Qualified Institutions Placement exercise. On 24 July 2014, Idea further
issued 51,838,540 ordinary shares with par value of INR10.00 each at an exercise price of INR144.68 per ordinary share to Axiata Investments
2 (India) Limited, a wholly-owned subsidiary of the Group under Preferential Insurance. As the result, the Group’s effective equity interest
in Idea diluted from 19.89% to 19.80%.
During the financial year (2014: From 1 January 2014 to 10 June 2014 and from 25 July 2014 to 31 December 2014 respectively), the
Group’s equity interest in Idea, decreased from 19.80% to 19.78% (2014: from 19.90% to 19.89% and 19.80% to 19.79% respectively)
following the issuance of new ordinary shares under Idea’s ESOS.
The Group recognised a loss on dilution of equity interest amounting to RM5.9 million (2014: RM29.7 million) during the financial year.
