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

NOTES TO THEFINANCIAL STATEMENTSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2012 (CONTINUED)48. EVENTS AFTER REPORTING period(a) Acquisition of Latelz Company Limited (“Latelz”) by AIC via the acquisition of the entire shares on issue ofGlasswool Holdings Limited (“Glasswool”)On 13 December 2012, the Company and its wholly-owned subsidiary, AIC have entered into a SPA withTimeturns Holdings Limited to acquire Glasswool, which will be the sole owner of Latelz upon completionof the transaction. Subsequently, it is the Group’s intention to merge the operations of Hello and Latelz asone combined entity.The acquisition was settled via a combination of cash consideration of approximately RM474.5 million(USD155.0 million) (subject to adjustments for the actual net debt and working capital positions as of thedate of completion) and a 10% stake in the combined entity (to be held by the remaining partner). Uponissuance of the 10% share consideration, the Group will end up with a 90% stake in the merged company.The transaction, with an implied enterprise value of RM551.1 million (USD180 million), was funded via acombination of internal cash and debt from existing financial facilities.On 19 February 2013, the acquisition and the transfer of Hello’s telecommunication business and assets werecompleted.(b) Disposal of 49.00% equity interest in MTCEOn 18 May 2011, the Group entered into a Sales and Purchase Agreement with Telecommunication Companyof Esfahan on the disposal of its entire shareholding in MTCE representing 49.00% of the total issued andpaid-up share capital in MTCE. The disposal was completed on 2 January 2013.308