Investors

We refer to the announcements dated 2 June 2021, 30 August 2021, 30 November 2021, 28 February 2022, 31 May 2022, 30 August 2022, 30 November 2022 and 28 February 2023 on the MOU between Axiata and RHB.

We wish to announce that save as disclosed below, there is no material development with regard to the MOU with RHB since 28 February 2022:

(a) Axiata had on 31 March 2023 announced the following:

• Boost Holdings and RHB had on 1 March 2023, jointly incorporated a company known as Boost Berhad which will, subject to approval from BNM, be the legal entity to carry out the digital banking business (“Proposed Digital Bank”).
• Boost Holdings, RHB and Boost Berhad had on 31 March 2023, entered into a share subscription agreement for Boost Holdings and RHB to subscribe for 100 million new ordinary shares in Boost Berhad for a cash consideration of RM100 million for Boost Berhad to meet the minimum capital funds requirements for a digital bank of RM100 million unimpaired by losses.
• Boost Holdings, RHB and Boost Berhad had on 31 March 2023, entered into a shareholders’ agreement to regulate the affairs of Boost Berhad as the Proposed Digital Bank, and Boost Holdings and RHB’s relationship between themselves as shareholders of Boost Berhad.

(b) The MOU which was executed on 2 June 2021 was for a term of 2-years and shall expire on 1 June 2023.

The expiry of the MOU will have no impact to the joint application for the digital bank license and Boost Holdings and RHB will continue to work together on the partnership for the digital bank license. Boost Holdings and RHB have obtained conditional approval from Bank Negara Malaysia (“BNM”) for the joint application for a digital bank license and incorporated the proposed legal entity to carry out the digital banking business and have also injected the minimum capital funds requirements for a digital bank of RM100 million into Boost Berhad.

This announcement is dated 30 May 2023.