Investors

We refer the notification by Idea on the approval issued by the Department of Telecommunications, Ministry of Communications, Government of India (“DoT”) in relation to the transactions contemplated under the Scheme to the National Stock Exchange of India Limited and BSE Limited on 27 July 2018. The completion of the merger is now subject to National Company Law Tribunal, Mumbai Branch, passing the dissolution order of VMSL and VIL.

The Board of Directors of Axiata wishes to provide the estimated financial impact resulting from the impending completion of the Scheme following the issuance of the above approval by the DoT.

The non-cash financial loss due to applicable accounting standards from the deemed dilution and de-recognition of Idea from associate to simple investment upon completion of the Scheme (“Reclassification of Idea”) is estimated to be approximately RM1.5 billion to RM3.0 billion. The Reclassification of Idea is attributed to the dilution of Axiata Group’s shareholding in the merged enlarged Idea-Vodafone entity from 16.33% to 8.17% upon completion of the Scheme which will result in the loss of certain shareholder’s rights as provided under the Subscription Agreement dated 25 June 2008 between; inter-alia, Axiata Group and Idea in relation to subscription by Axiata Group of shares in Idea.

The estimated loss above is expected to have a material impact on the financial quarter ended 30 June 2018. The actual impact on de-recognition from the Reclassification of Idea will be provided upon completion of the Scheme. Being a non-cash item, the financial impact above will have no bearing to Axiata Group’s current or future cash position.

This announcement is dated 27 July 2018.