Investors

1. INTRODUCTION

Axiata Group Berhad ("Axiata" or the "Company") wishes to announce that it has entered into a shareholder’s loan agreement dated 7 December 2021 of USD20.0 million with its subsidiary, edotco Group Sdn Bhd (“edotco”) (“Shareholder Loan”).

2. INFORMATION ON EDOTCO

edotco is a company incorporated in Malaysia and is a 63% owned subsidiary of Axiata.

The principal activities of edotco are investment holding and provision of technical and operations support services in the telecommunication and related industries in local and/or international markets.

3. INFORMATION AND RATIONALE ON THE SHAREHOLDER LOAN

The Shareholder Loan is a loan to be disbursed by Axiata to edotco and is intended for edotco to inject further capital into edotco Tower Pakistan (Private) Limited.

The Shareholder Loan will have a tenure of 12 months which will end on 7 December 2022.

The Shareholder Loan is provided on comparable commercial terms and on an arms-length basis. It is expected to contribute positively to the interest income of Axiata based on prevailing market benchmarks.

4. RISK

Save for the credit risks associated with lending, Axiata does not foresee any other risks resulting from the Shareholder Loan.

5. EFFECTS OF THE SHAREHOLDER LOAN

The Shareholder Loan will not have any effect on the issued and paid-up share capital of Axiata and it is not expected to have any material effect on the earnings and the net assets of Axiata Group for the financial year ending 31 December 2021.

6. DIRECTORS AND MAJOR SHAREHOLDER’S INTERESTS

Khazanah Nasional Berhad (“Khazanah”), a major shareholder of Axiata is deemed to have an interest in the Shareholder Loan by virtue of Khazanah also being a major shareholder of edotco. As of 30 November 2021, Khazanah holds approximately 36.75% and 10.57% in Axiata and edotco respectively.  

Ong King How (“Interested Director”), a Non-Independent Non-Executive Director of Axiata is a full time executive of Khazanah and is Khazanah’s representative on Axiata’s Board and accordingly, he has abstained and will continue to abstain from all deliberations and voting in relation to the Shareholder Loan. 

Save as disclosed above, none of the other major shareholders and/or Directors of Axiata and/or persons connected to them have any direct or indirect interest in the Shareholder Loan.

7. APPROVAL REQUIRED

The Shareholder Loan is not subject to any shareholder approval or any relevant government authorities.  The highest percentage ratio of the RPT is 0.46%1 based on the audited consolidated financial statements of Axiata for the financial period ended 31 December 2020.

8. BOARD OF DIRECTORS’ STATEMENT

The Board of Directors (save for the Interested Director) is of the opinion that the Shareholder Loan is in the best interests of Axiata and is fair, reasonable and on commercial terms, and not detrimental to the interest of Axiata and its shareholders.

9. DOCUMENT FOR INSPECTION

The Shareholder Loan Agreement is available for inspection at Axiata’s registered office at Level 5, Axiata Centre, 9 Jalan Stesen Sentral 5, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia during normal business hours from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

 This announcement is dated 8 December 2021.

1Based on the closing exchange rate of USD1 : RM4.0360 as at 31 December 2020.

Announcement Info