Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Axiata Group Berhad (242188-H) Annual Report 20125. SIGNIFICANT INCORPORATION, ACQUISITIONS, MERGER, DISPOSALS AND DILUTIONS OF INTERESTS(CONTINUED)(a) Incorporation, acquisitions and dilutions of interests during the financial year (continued)(xiii) Dilution of equity interest in PT XL Axiata Tbk (“XL”)The Group’s equity interest in XL, decreased from 66.61% to 66.55% (2011: from 66.69% to 66.61%)following the issuance of new ordinary shares under XL’s Shares Based Compensation Scheme asdisclosed in Note 14(c) to the financial statements.The dilution has no significant impact to the Group.(b) Incorporation, acquisitions and dilution of interests in the previous financial year(i)Incorporation of Dialog Business Services (Private) Ltd (“DBS”) and partial disposalOn 21 January 2011, Dialog incorporated a new wholly owned subsidiary, named Dialog BusinessServices (Private) Ltd (“DBS”) for the purpose of carrying out information technology enabled services.On 3 May 2011, Dialog signed an agreement with Firstsource Solution Limited (“FSL”) and transferred74.00% of its stake in DBS to FSL and held 26% with effect from 13 May 2011. As a result, DBS wasrenamed as Firstsource Dialog Solution (Private) Limited and became an associate of Dialog effectiveon that date.The above transaction had no significant impact to the Group in the previous financial year.(ii) Incorporation of Axiata Foundation (“AF”)On 6 April 2011, AF, a company limited by guarantee was incorporated under the Companies Act 1965,with the first two (2) members being Axiata and its wholly-owned subsidiary Celcom for the purposeof developing and nurturing talent pool and fostering, developing and improving education.The incorporation above had no significant impact to the Group and the Company in the previousfinancial year.(iii) Dilution and acquisition of equity interest in IdeaIn the previous financial year, from 1 January 2011 up to 5 August 2011, the Group’s equity interest inIdea, held through Axiata Investments 1 (India) Limited (“AI1”) and Axiata Investments 2 (India) Limited(“AI2”), the wholly owned subsidiaries of the Group, decreased from 19.10% to 19.08% following theissuance of new ordinary shares under Idea’s ESOS.On 5 August 2011, AI2 acquired an additional 29,776,341 ordinary shares of Idea, representing 0.90%of the issued and paid-up share capital of Idea for a total consideration of RM205.5 million (USD69.1million). As a result, the Group’s effective equity interest in Idea increased from 19.08% to 19.98%.From 6 August 2011 up to 31 December 2011, the Group’s equity interest in Idea further decreased from19.98% to 19.96%, following the issuance of new ordinary shares under Idea’s ESOS.207