Investors

Axiata Group Berhad (“Axiata”) wishes to announce that Padda Gurtaj Singh, East Pacific Capital Ltd and Tune Strategic Investments Limited (“the Plaintiffs”), being certain shareholders of Tune Talk Sdn Bhd (“Tune Talk”), had on 28 September 2021 filed an originating summons (“OS”) to the High Court of Malaya in Kuala Lumpur on Axiata, Celcom Axiata Berhad (“Celcom”), Celcom Mobile Sdn Bhd (“Celcom Mobile”), Tune Talk and the other shareholders of Tune Talk as defendants. Celcom Mobile is a wholly-owned subsidiary of Celcom and a 35% shareholder of Tune Talk whereas Celcom is a wholly-owned subsidiary of Axiata.

The Plaintiffs sought, among others, the following relief:

1. that Axiata be restrained from including Celcom Mobile’s shareholding in Tune Talk from being included in the proposed merger between Celcom and Digi.Com Berhad (“the Proposed Merger”);
2. that Celcom be restrained from revising the terms on which it provides network services to Tune Talk;
3. that the directors of Tune Talk nominated by Celcom Mobile be restrained from voting on any decisions of the board of Tune Talk; and
4. that no decision requiring a positive vote by Celcom or Celcom Mobile be made unless with the agreement of all the remaining shareholders of Tune Talk.

The dispute in question pertains to allegations by the Plaintiffs that the Proposed Merger amounts to a material breach under the shareholders’ agreement of Tune Talk dated 23 December 2008, the parties to which comprise the Plaintiffs, Celcom and other persons. Axiata is not a party to the shareholders’ agreement.

Axiata, Celcom and Celcom Mobile had on 11 October 2021 filed the following applications to the High Court of Malaya in Kuala Lumpur:

1. A notice of application by Axiata to strike out the OS; and
2. A joint notice of application by Celcom and Celcom Mobile to strike out the OS.

The OS is not expected to have any significant financial or operational impact on the Axiata group.