Axiata has stated that its indirect subsidiary Boost Holdings had on 3 November 2023 subscribed for 51 million new ordinary shares in Boost Berhad for a cash consideration of RM51 million with the source of funds coming from internally generated funds.
Boost Holdings and RHB Bank hold 60% and 40% respectively of the equity share capital of Boost Berhad whereby RHB had also subscribed for 34 million new Boost Berhad Shares for a cash consideration of RM34 million.
The parties said the purpose of the Additional Subscription is for Boost Berhad to continue meeting the minimum capital funds requirements for a digital bank of RM100 million unimpaired by losses. Upon completion of the Additional Subscription, the paid-up capital of Boost Berhad is RM185 million comprising 185 million Boost Berhad Shares.
Axiata said the Additional Boost Holdings Subscription will not have any effect on the issued share capital and shareholdings of the substantial shareholders of the group. The Additional Boost Holdings Subscription is not expected to have any material effect on the net asset, gearing and earnings of the Axiata Group for the financial year ending 31 December 2023.
(a) As at 27 October 2023, the Employees Provident Fund Board, a major shareholder of Axiata with equity interest of 17.64% also holds equity interest of 40.93% in RHB Bank.
The Additional Boost Holdings Subscription is not subject to the approval of shareholders of Axiata or any other relevant authorities and/or parties.
