Axiata’s edotco Investments buying 12.5% of edotco SG
PETALING JAYA: Axiata Group Bhd’s unit, edotco Investments (Labuan) Ltd (edotco Investments) is acquiring 250,000 ordinary shares in the share capital of edotco Investments Singapore Pte Ltd (edotco SG) for US$35 million (RM146.9 million) cash.
In a filing with Bursa Malaysia yesterday, it said that edotco Investments entered into a sale and purchase agreement (SPA) with YSH Finance for the acquisition, which represents 12.5% of the option shares.
edotco Investments is a wholly owned subsidiary of edotco Group Sdn Bhd (edotco Group), which in turn is a wholly owned subsidiary of Axiata Group.
Axiata Group said the cash consideration of US$35 million was arrived at after taking into consideration, inter-alia, the actual 12-month earnings before interest, tax, depreciation and amortisation (ebitda) performance of edotco Myanmar Ltd up to Sept 30, 2016, and assignment and transfer of outstanding loans advance by YSH Finance to edotco SG.
After the completion of the acquisition and the SPA becoming unconditional, the put and call option agreement will be terminated and parties will execute a revised amended and restated shareholders agreement including a right of first offer to edotco Investments in the event of a proposed sale by YSH Finance of the remaining option shares with the above consideration as the base price.
The SPA is conditional, inter-alia, upon certain consents and waivers being fulfilled by Dec 31, 2016, or such other date as agreed by the parties. Upon completion, edotco Group will hold 87.5% of edotco Myanmar.