Investors

Axiata refers to the announcement dated 31 March 2023 on the Share Subscription Agreement and Shareholders Agreement (“SHA”) between Boost Holdings Sdn Bhd (“Boost Holdings”), an indirect subsidiary of the Company, RHB Bank Berhad (“RHB Bank”) and Boost Berhad in relation to the Proposed Digital Bank.

The Company is pleased to announce that Boost Holdings had on 3 November 2023 subscribed for 51.0 million new ordinary shares in Boost Berhad (“Boost Berhad Shares”) for a cash consideration of RM51.0 million (“Additional Boost Holdings Subscription”).  The source of funds for the Additional Boost Holdings Subscription is from internally generated funds of Boost Holdings.

For information purposes, pursuant to the SHA, Boost Holdings and RHB Bank shall hold 60% and 40% respectively of the equity share capital of Boost Berhad. Therefore, RHB had on 3 November 2023 also subscribed for 34.0 million new Boost Berhad Shares for a cash consideration of RM34.0 million (“Additional RHB Subscription”).

(The Additional RHB Subscription and the Additional Boost Holdings Subscription are collectively referred to as “Additional Subscription”)

The purpose of the Additional Subscription is for Boost Berhad to continue meeting the minimum capital funds requirements for a digital bank of RM100 million unimpaired by losses. Upon completion of the Additional Subscription, the paid-up capital of Boost Berhad is RM185.0 million comprising 185.0 million Boost Berhad Shares.

The Additional Boost Holdings Subscription will not have any effect on the issued share capital and shareholdings of the substantial shareholders of Axiata. The Additional Boost Holdings Subscription is not expected to have any material effect on the net asset, gearing and earnings of the Axiata Group for the financial year ending 31 December 2023.

None of the Directors or major shareholders of Axiata as well as persons connected with them have any interest, direct or indirect, in the Additional Boost Holdings Subscription, save as disclosed below:

(a)   As at 27 October 2023, the Employees Provident Fund Board (“EPF”), a major shareholder of Axiata with equity interest of 17.64% also holds equity interest of 40.93% in RHB Bank. 

(b)  Mohamad Hafiz Kassim, a Non-Independent Non-Executive Director of Axiata representing EPF, has and will continue to abstain from deliberating and voting on the Additional Boost Holdings Subscription as may be presented to the Axiata Board.

The Additional Boost Holdings Subscription is not subject to the approval of shareholders of Axiata or any other relevant authorities and/or parties.

The highest percentage ratio applicable to the Additional Boost Holdings Subscription pursuant to paragraph 10.02(g) of the Main Market Listing Requirements issued by Bursa Malaysia Securities Berhad is 0.21%.

This Announcement is dated 3 November 2023.