KUALA LUMPUR (May 7): Axiata Group Bhd has proposed to award up to 2.92 million shares in the company to its managing director/president and group chief executive officer Datuk Mohd Izzaddin Idris, after the mobile operator recorded a 1.1% growth in its earnings in the financial year 2020 (FY20).

Axiata said the share award was proposed to retain and reward Izzaddin, "who is vital to the continued growth and business aspiration" of the group.

"The new ordinary shares to be allotted and issued pursuant to the proposed award shall be subject to the provisions of the constitution of Axiata, and shall, upon allotment and issuance, rank equally in all respects with the then existing ordinary shares of Axiata, except that Datuk Mohd lzzaddin Idris shall not be entitled to any dividend, rights, allotment and/or other distribution, the entitlement date of which is prior to the date on which the new ordinary shares are allotted and issued under the proposed award," it said in a filing with Bursa Malaysia today.

The proposed award is subject to the approval being obtained from Axiata's shareholders at the group's upcoming 29th annual general meeting, as well as from the regulator, Bursa Malaysia.

Axiata added that the proposed award may also be offered annually to Izzaddin, subject to conditions as prescribed in the Axiata Share Scheme. The group's share scheme was approved by shareholders on May 25, 2016.

The estimated total of up to 2.92 million shares for grants under the proposed award is based on the projected maximum levels for the remaining period of the Axiata Share Scheme, which is ending on Sept 29, 2026.

For FY20, the group's revenue fell 1.5% to RM24.2 billion against RM24.58 billion in the previous year, as pandemic-related lockdowns posed distribution challenges and affordability in operating markets.

Despite the drop in revenue, Axiata's earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 1.1% to RM10.7 billion, on the back of revenue (ex-device) growth at Dialog3, Robi4 and Smart5 with operating expenditure savings of RM745 million.

Axiata's share price closed nine sen or 2.39% lower at RM3.68 today, valuing the company at RM33.76 billion.