Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 9): Axiata Group Bhd’s 82.5%-owned unit in Cambodia, Smart Axiata Co Ltd, has entered into an agreement in relation to a proposed investment which will see Smart provide a loan facility of US$1.5 million to Sabay Digital Plus Co Ltd, which is convertible to ordinary shares in Sabay Digital.

According to the filing with Bursa, the agreement also includes a call option agreement (COA) with Sabay Digital and Sabay Digital Group Pte Ltd (SDG) for the acquisition of additional Sabay Digital shares from SDG such that the additional number of Sabay Digital’s shares will result with the aggregate number of Sabay Digital’s shares held by Smart being equivalent to 30% of the issued and paid-up capital of Sabay Digital.

It added that all or part of the remaining issued and paid-up capital of Sabay Digital from SDG will be set at a price to be agreed on.

SDG is a private limited company incorporated in Singapore while Sabay Digital is a private limited company incorporated in Cambodia on July 2017.

The note filed with Bursa highlighted that the proposed investment in Sabay Digital is aligned with Axiata’s digital service strategy and Smart’s strategy framework 2017 in which digital services and contents are key focus areas.

“Combining Smart’s data leadership with Sabay Digital’s compelling portfolio such as its news portal and video on demand (VoD) or over the top (OTT) services will enable Smart to play a central role in the emerging digital content and online video value chain in Cambodia,” it said.

The proposed investment in Sabay Digital will be funded through internally generated funds, it added.

As of closing, Axiata edged higher by 0.19% to RM5.33 with about 8.6 million shares traded, giving it a market capitalisation of RM47.9 billion.

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