axiata group berhad | annual report 2015
194
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
19. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Non-hedging derivatives financial instruments (continued)
(c) Convertible warrants in an associate
Sacofa Sdn Bhd (“Sacofa”), an associate company of the Group undertook a refinancing exercise which entails amongst others, the issuance of
up to RM400.0 million Islamic Medium Term Notes, the issuance of up to RM50.0 million Islamic Commercial Paper and the 64.2 million bonus issue
of warrants on the entitlement basis of one (1) free warrant for every one (1) existing Sacofa ordinary share held.
Counterparty
Underlying number
of shares
Period
Strike price
Sacofa
12,834,327
28 Jan 2009-25 Jan 2019 RM1.50/share + any adjustments
(d) Put option over shares held by non-controlling interest in DAH
In conjunction with the acquisition of DAH as disclosed in Note 5 (a)(xiv) to the financial statements, EIL has granted Yoma an option to sell,
which would require EIL to buy all the shares of Yoma together with shareholders loan at a price higher of fixed price of USD40.0 million or price
determined based on EBITDA multiple.
The Put Option may be exercised at any time by Yoma during the option period which is five (5) years from 4 December 2015. In addition to that,
Yoma has also granted EIL an option to buy all the shares of Yoma together with the shareholder loan at a price higher of fixed price or price
determined based on EBITDA multiple.
Derivative designated as hedging instrument
(e) Net investment hedge – Cross currency interest rate swaps
The underlying debt instrument for the CCIRS is the Group’s Notes as disclosed in Note 16(b) to the financial statements. The hedge is designed
to hedge against foreign currency and interest rate risks.
The information relating to the derivatives of a subsidiary of the Company as at 31 December 2015 is as follows:
Notional
amount
USD’million
Notional
amount
SGD’million
Period
Exchange
period
Floating
interest
rate paid
Floating
interest
rate received
Fair value assets/(liabilities)
2015
2014
RM’000
RM’000
300.0
421.3 28 Oct 2010-
28 Apr 2020
Semi-
annually
4.315%-
4.350% on
SGD notional
5.375% on
USD
notional
101,807
(11,992)
