Friday 29 Mar 2024
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KUALA LUMPUR (Dec 8): Axiata Group Bhd has extended a US$20 million loan to edotco Sdn Bhd for the 63%-owned subsidiary to inject further capital into its Pakistan operations.

The loan agreement signed on Tuesday will have a tenure of 12 months, Axiata said in a bourse filing.

“The shareholder loan is provided on comparable commercial terms and on an arms-length basis. It is expected to contribute positively to the interest income of Axiata based on prevailing market benchmarks,” the group said.

Axiata added that its directors are of the opinion that the loan is fair and reasonable, and not detrimental to the interest of Axiata and its shareholders.

Meanwhile, one of its non-independent non-executive director, Ong King How, who is the representative and a full time executive of Khazanah Nasional Bhd — which owns 36.75% in Axiata and a deemed interest of 10.57% in edotco — will abstain  from all deliberations related to the loan.

Axiata said the highest percentage ratio of the related party transaction is 0.46% based on an exchange rate of US$1 to RM4.04 in the group’s audited consolidated financial statements for its financial year ended Dec 31, 2021.

Shares of the telecommunications group closed nine sen or 2.37% down at RM3.70, giving it a market capitalisation of RM33.95 billion.

Edited ByS Kanagaraju
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