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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
199
19. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Non-hedging derivatives financial instruments (continued)
(b) Call spread options
The information relating to the derivative financial instruments of a subsidiary of the Group as at 31 December 2016 is as follows:
Counterparties
Notional
amount
USD’ million
Period
Strike/
cap rate
1USD:
Premium
per annum
Start of
optional
termination
date
Bank of America Merrill Lynch - Singapore
100.0 29 May 2014 -
9 Jan 2019
IDR11,580-
IDR14,580
3.33% 9 Oct 2015
DBS Bank Ltd. Singapore
200.0 30 May 2014 -
14 March 2019
IDR11,600-
IDR14,600
3.22% 17 March 2015
(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 NCI in Robi
In conjunction with the amalgamation/merger of Airtel with Robi as disclosed in Note 5(a)(xiii) to the financial statements, the Group granted
a non-controlling shareholder, a put option which requires the Group to purchase all shares held by this non-controlling shareholder, at a price
determined to be the lower of EBITDA with a fixed multiple or EBITDA with comparable companies’ multiple. The put option is exercisable four
(4) years from 16 November 2016, for a period of two (2) years.
The Group recognised a derivative liability and other reserve of RM1,159.4 million on initial recognition.
(e) Put option over shares held by NCI in edotco SG
(i)
In conjunction with the acquisition of edotco SG as disclosed in Note 5(b)(xii) 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 USD40.3
million or price determined based on EBITDA multiple. Accordingly, the Group recognised a total of RM172.8 million in other reserve on
date of the agreement entered.
The put option was to 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 had 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.