Axiata Group Bhd has entered into a shareholder’s loan agreement of US$20 million (RM84 million) with its subsidiary, edotco Group Sdn Bhd (edotco).
In a filing with Bursa Malaysia, Axiata said the shareholder loan is a loan to be disbursed by the company to edotco and is intended for the latter to inject further capital into edotco Tower Pakistan (Private) Limited.
The shareholder loan will have a tenure of 12 months which will end on December 7, 2022.
“It is expected to contribute positively to the interest income of Axiata based on prevailing market benchmarks.
“The board of directors 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,” it said.
In addition, the company said Khazanah Nasional Bhd (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 November 30, 2021, Khazanah holds approximately 36.75 per cent and 10.57 per cent in Axiata and edotco respectively.
“Ong King How, 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,” it said.
edotco is a 63 per cent-owned subsidiary of Axiata. Its principal activities are investment holding and provision of technical and operations support services in the telecommunication and related industries in local and/or international markets. — Bernama
Source: https://www.malaymail.com/news/money/2021/12/08/axiata-to-provide-us20m-loan-to-edotco/2026982