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Axiata Group Berhad | Annual Report 2016
FINANCIAL STATEMENTS
154
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
5.
INCORPORATIONS, ACQUISITIONS, DISSOLUTIONS AND DILUTIONS OF INTERESTS (CONTINUED)
(a) Incorporations, acquisitions, dissolutions and dilutions of interests during the financial year (continued)
(ii) Incorporation of AD Video Sdn Bhd (“ADV”)
Axiata Digital Services Sdn Bhd (“ADS”), had on 25 February 2016 completed the incorporation of ADV, a private company limited by
shares, under the Companies Act, 1965.
ADV was incorporated with an authorised share capital of RM400,000 divided into 400,000 ordinary shares of RM1 each. The issued and
paid-up share capital of ADV is RM4 and its intended principal activity is to establish, maintain and operate an internet-based multimedia
services.
The incorporation above did not have any significant impact to the Group during the financial year.
(iii) Incorporation of WSO2.Telco (Private) Limited (“WSO2.Telco SL”)
WSO2.Telco Inc., a subsidiary of ADS, had on 17 March 2016 completed the incorporation of WSO2.Telco SL, a private company limited
by shares, in Sri Lanka, under the Companies Act No.7 of 2007.
WSO2.Telco SL was incorporated with issued and paid-up capital of 1 ordinary share at value of SLR10 each. The nature of business to
be carried by WSO2.Telco SL is to develop and provide support services for software technologies, products and solutions.
The above incorporation did not have any significant impact to the Group during the financial year.
(iv) Acquisition of edotco Pakistan (Private) Limited (“edotco PK”)
Axiata Investments (Labuan) Limited, a wholly-owned subsidiary of the Company, had on 19 December 2014 entered into a SPA with
Arif Hussain and Joozer Jiwakhan for the acquisition of the issued share capital of edotco PK at a cash consideration of PKR3,100 or
RM118. The acquisition was completed on 24 March 2016 and effectively, edotco PK became a subsidiary of the Group.
The acquisition of edotco PK did not have any significant impact to the Group during the financial year.
(v) Dilution of equity interest in PT XL Axiata Tbk (“XL”)
On 10 March 2016 (2015:1 April), the Extraordinary General Meeting of Shareholders of XL approved the Share-based Compensation
Program Grant Date V. On 6 April 2016 (2015: 21 April), XL issued 8,986,668 (2015: 6,891,003) ordinary shares at par value of IDR100
each without pre-emptive rights to its eligible employees. Accordingly, the Group’s effective equity interest in XL diluted from 66.43%
to 66.36% (2015: 66.48% to 66.43%). The Group recorded an increase in consolidated retained earnings of RM3.1 million (2015: RM4.3
million) and NCI of RM6.0 million (2015: RM4.9 million) respectively during the financial year.
(vi) Acquisition in Localcube Commerce Private Limited (“Localcube”)
On 7 April 2016, the Group via Axiata Investments (Mauritius) Limited, a wholly-owned subsidiary of ADS entered into a Share Subscription
Agreement with Localcube and the promoters, namely Sridhar Gundaiah and Govardhan Krishnappa Kadaliah for the issuance of 6,236
Compulsorily Convertible Preference Shares of Localcube at par value of INR10 per share representing 25.22% of issued and paid up
capital of Localcube for a total consideration of RM 51.6 million (USD 12.8 million).
The above acquisition did not have any significant impact to the Group during the financial year.
(vii) Acquisition of Reynolds Holdings Limited (“Reynolds”) by Axiata Investments (UK) Limited (“Axiata UK”)
On 21 December 2015, the Company and its wholly-owned subsidiary, Axiata UK entered into a Sale and Purchase Agreement (“SPA”)
and other ancillary agreements for the acquisition of the entire ordinary shares in issue of Reynolds, which owns 80.00% ordinary shares
in issue of Ncell Private Limited (“Ncell”). On 11 April 2016, the Group completed the acquisition of Reynolds and effectively became a
subsidiary of the Group.