Investors

1.0      INTRODUCTION

Following the notification by Dialog Axiata PLC (“Dialog”) to the Colombo Stock Exchange (“CSE”) on 18 January 2018, we are pleased to announce that Headstart (Private) Limited (“Headstart”) had on 18 January 2018 became a 50.59% subsidiary company of Digital Holdings Lanka (Private) Limited which in turn is a wholly-owned subsidiary of Dialog, a 83.32% subsidiary of Axiata Group Berhad (“Axiata”).

2.0      INFORMATION OF DIALOG AND HEADSTART

2.1     Dialog

Dialog was incorporated in August 1993 and commenced operations in 1995. The stated capital of Dialog is LKR 28,103,913,435.00 (equivalent to approximately RM719,460,183.94). Dialog operates Sri Lanka’s Leading Quad-Play Connectivity Provider. Dialog, listed on the CSE, supplements its market leading position in the mobile telecommunications sector with a robust footprint and market presence in Sri Lanka’s fixed telecommunications and digital television markets through its wholly owned subsidiaries; namely, Dialog Broadband Networks (Private) Limited and Dialog Television (Private) Limited. Dialog is Sri Lanka's largest Foreign Direct Investor with investments totalling over USD 2.1 billion.

Dialog has further expanded its portfolio by investing in digital services in the fields of Digital Commerce (a wholly-owned subsidiary Digital Commerce Lanka (Private) Limited), Digital Health (70% ownership in Digital Health (Private) Limited) and Digital Education (50.59% ownership in Headstart (Private) Limited) and Digital Financial Services (through its internationally acclaimed, Mobile Money Service eZ Cash).

2.2       Headstart

Headstart (Company Registration No PV 92906) is a private limited company and is engaged in the business of creating and providing e-learning solutions and owns Sri Lanka’s leading digital education portal “Guru.lk”.

3.0       INVESTMENT IN HEADSTART

Dialog Group’s investment in Headstart started in 2014 in which Headstart engages in the business of creating and providing digital education and e-learning solutions under the brand name "Guru.lk".

Dialog’s investment totalling USD640,000 was via subscription of bonds which may be converted to equity over time with the initial conversion resulting in a 26% equity stake in Headstart in 2015. With the conversion (dated 1 January 2018) of the last tranche of these outstanding bonds, Dialog increased its stake in Headstart to 50.59%.

4.0       DIRECTORS’ AND MAJOR/SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors and major shareholders of Axiata and/or persons connected to them have any interest direct and/or indirect in the Headstart. 

This announcement is dated 22 January 2018.