axiata group berhad | annual report 2015
154
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
5.
INCORPORATIONS, ACQUISITIONS, MERGERS, DISPOSALS AND DILUTIONS OF INTERESTS (CONTINUED)
(b) Incorporation, acquisitions, merger, disposal and dilutions of interests in the previous financial year (continued)
(iii) Treasury shares transaction of XL
On 26 February 2014, XL bought back its issued and paid-up ordinary share of 231,114,140 (treasury shares) at a buy back price of
IDR5,280 per ordinary share from its former shareholders who disapproved the Merger Plan of XL and Axis as disclosed in Note 5(b)(ii) to
the financial statements for a net consideration of RM339.7 million which was subsequently paid by XL on 21 April 2014. As a result, the
Group’s effective equity interest in XL increased from 66.48% to 68.34%. Accordingly, the Group reduced RM152.5 million and RM187.2
million of the consolidated retained earnings and non-controlling interests respectively.
Subsequently on 30 September 2014, XL resold the entire treasury shares in open market for a total net consideration of RM354.4 million.
Accordingly, the Group’s effective equity interest in XL decreased from 68.34% to 66.48% and the Group increased RM170.4 million and
RM184.0 million of its consolidated retained earnings and non-controlling interests respectively.
(iv) Disposal of Samart i-Mobile Public Company Limited (“SIM”)
On 2 July 2014, the Company entered into an agreement with Samart Corporation Public Company Limited to dispose of its entire
shareholding in SIM representing 24.08% of the total issued and paid-up share capital of SIM for a total net consideration of RM262.8 million.
The disposal was completed on 30 July 2014 and a gain on disposal amounting to RM116.7 million was recognised in the previous financial
year.
(v) Acquisition of equity interest in Celcom Planet Sdn Bhd (“Celcom Planet”)
On 17 October 2014, Celcom through its wholly-owned subsidiary, Celcom Intelligence Sdn Bhd (“Celcom Intelligence”) and SK Planet Global
Holdings Pte Ltd (“SK Planet”), incorporated a joint venture entity with a shareholding ratio of 51 (SK Planet): 49 (Celcom Intelligence), namely
Celcom Planet for the purpose of pursuing e-Commerce opportunities in Malaysia. Effectively, Celcom Planet became an associate of the
Group.
The incorporation of Celcom Planet did not have significant impact to the Group in the previous financial year.
(vi) Dilution of equity interest in Dialog
In line with the expiry of ESOS scheme of Dialog on 25 October 2014, a total 158.6 million ordinary shares were partially exercised by
the employee of Dialog and the remaining were sold to market. Accordingly, the Group’s equity interest in Dialog decreased from 84.97%
to 83.32% and the Group increased RM24.3 million and RM25.6 million of its consolidated retained earnings and non-controlling interests
respectively.
(vii) Incorporation of Digital Holdings Lanka (Private) Limited (“DHL”)
On 24 November 2014, Dialog incorporated DHL, a private company limited by shares, under the Companies Act, No.7 of 2007 in Sri Lanka
with a stated capital of SLR10. The nature of business to be carried by DHL is as an investment holding company.
The incorporation of DHL did not have significant impact to the Group in the previous financial year.
(viii) Incorporation of Axiata Digital Advertising Sdn Bhd (“ADA”)
On 26 November 2014, the Group incorporated ADA, a private company limited by shares, under the Companies Act, 1965 with an
authorised share capital of RM0.4 million divided into 400,000 ordinary shares of which its issued and paid-up share capital is RM2. The
nature of business to be carried out by ADA is as an investment holding company.
The incorporation of ADA did not have significant impact to the Group in the previous financial year.
