Axiata Group Berhad - Annual Report 2016

Axiata Group Berhad | Annual Report 2016

FINANCIAL STATEMENTS

158

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016

INCORPORATIONS, ACQUISITIONS, DISSOLUTIONS AND DILUTIONS OF INTERESTS (CONTINUED)

(a) Incorporations, acquisitions, dissolutions and dilutions of interests during the financial year (continued)

(xiv) Incorporation of Dialog Business Services (Private) Limited (“DBS”)

On 21 November 2016, Dialog Axiata PLC incorporated DBS (Company

118079), a private company limited by shares, under the

Companies Act, No. 7 of 2007.

DBS was incorporated with a stated capital of SLR10. The nature of business to be carried by DBS is to carry out the business of

providing Business Process Outsourcing services including call centre services.

The above incorporation did not have any significant impact to the Group during the financial year.

(xv) Incorporation of edotco Towers (Bangladesh) Limited (“edotco Towers BD”) 

edotco Investments (Labuan) Limited (“edotco Labuan”), a subsidiary of the Group, had on 17 November 2016 incorporated a new

subsidiary, edotco Towers BD (Company No. C-134238), a public company limited by shares.

The incorporation of edotco Towers BD was completed following the receipt by edotco Labuan on 29 November 2016 of the Certificate

of Incorporation from the Registrar of Joint Stock Companies and Firms, Republic of Bangladesh.

edotco Towers BD, a company duly incorporated under the Companies Act, 1994 of the Republic of Bangladesh has an authorised share

capital of BDT10.0 million represented by 1.0 million ordinary shares of BDT10 each of which BDT0.95 million has been paid-up. The

business objective of edotco Towers BD is to undertake telecommunications infrastructure and services.

The above incorporation did not have any significant impact to the Group during the financial year.

(xvi) Acquisition of additional 12.50% equity interest in edotco Investments Singapore Pte Ltd [formerly known as Digicel Asian

Holdings Pte Ltd] (“edotco SG”)

On 7 November 2016, edotco Investments (Labuan) Limited (“edotco Labuan”) entered into a SPA with YSH Finance Limited (“Yoma”)

for the acquisition of 250,000 ordinary shares in the share capital of edotco SG for a cash consideration of RM156.7 million or USD35.0

million. As the result, the equity interest in edotco SG increased from 75.00% to 87.50%.

The Group recognised a decrease in consolidated retained earnings of RM83.4 million and non-controlling interests of RM73.3 million

respectively during the financial year.

(xvii) Accretion/dilution on equity interest in M1 Limited (“M1”)

From 19 February 2016 until 22 March 2016, M1 had bought back its 7.5 million ordinary shares by way of market acquisition and all

the shares purchased back are held as treasury shares. As the result, the Group’s equity interest in M1, held through Axiata Investments

(Singapore) Limited, a wholly-owned subsidiary of the Company increased from 28.32% to 28.55%.

Subsequently after 22 March 2016 until 26 September 2016, M1 has resold its treasury shares to its existing employees via its ESOS’s

scheme. The Group’s equity interest in M1 diluted from 28.55% to 28.54%.

In the previous 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% following the issuance of new ordinary shares under M1’s ESOS.

The Group recognised a loss on dilution of equity interest amounting to RM2.3 million (2015: RM11.5 million) in the financial year.

(xviii) Dilution on equity interest in Idea Cellular Limited (“Idea”)

During the financial year, the Group’s equity interest in Idea, decreased from 19.78% to 19.77% (2015: from 19.79% to 19.78%) following

the issuance of new ordinary shares under Idea’s ESOS.

The Group recognised a loss on dilution of equity interest amounting to RM3.1 million (2015: RM5.9 million) during the financial year.