Axiata gets consents to waivers under 2050 notes, 2026, 2030 sukuk

By Rebecca Melvin

Concord, N.H., Sept. 3 – Malaysia’s Axiata Group Bhd. announced the results of its Aug. 11 consent solicitations for three series of notes and sukuk that expired at 5 a.m. ET on Aug. 31.

Meetings for the noteholders and sukukholders were held on Sept. 2. For each series, votes received representing a majority of at least three-quarters of the total votes cast were in favor of the extraordinary resolution. With the meeting quorum met and the necessary majority obtained, each of the extraordinary resolutions was passed.

As reported, Axiata sought consents to waivers relates to a planned merger of the telecommunications operations of Celcom Axiata Bhd. and Digi.com Bhd., which is currently expected to close in the second quarter of 2022 and in which Axiata and Telenor Asia Pte Ltd. will have a 33.1% ownership.

Axiata SPV5 (Labuan) Ltd., issuer of the notes, and Axiata SPV2 Bhd., trustee of the sukuk, sought the consents out of an abundance of caution to avoid any event of default or dissolution event that would arise from the proposed merger.

The consent solicitations were for the following securities:

• $1 billion outstanding 3.064% notes due 2050 (ISIN: XS2216900287);

• $500 million outstanding 4.357% sukuk due 2026 (ISIN: XS1382802095); and

• $500 million outstanding 2.163% sukuk due 2030 (ISIN: XS2216900105).

Upon the waivers becoming effective, Axiata will pay holders $1 per $1,000 note as a consent fee.

Even though the extraordinary resolutions passed and have become effective, the waivers will become effective only if Axiata is able to proceed with the closing of the merger, the company noted.

The consent fee deadline was 11 a.m. ET on Aug. 24.

Maybank Investment Bank Bhd. (+603 2059 1888, MIBprojectkinabaludcm@maybank-ib.com) and Standard Chartered Bank (+44 20 7885 5739, +852 3983 8658, +65 6557 8286, liability_management@sc.com) were the joint solicitation agents.

Morrow Sodali Ltd. was the tabulation agent (+852 2319 4130, +44 20 4513 6933, https://bonds.morrowsodali.com/Axiata, axiata@investor.morrowsodali.com).

Axiata is a telecommunications conglomerate based in Kuala Lumpur, Malaysia.

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