MALAYSIA: Telecommunication conglomerate Axiata Group, via Axiata, Axiata SPV5 (Labuan) and Axiata SPV2, is seeking the consent of the Sukukholders of its 2026 and 2030 Sukuk (both worth US$500 million) to waive certain conditions of the issuances in light of a potential merger between its Indonesian subsidiary XL Axiata and Smartfren Telecom.
The waivers are for conditions which provide, among other things, that a dissolution event will occur if the Sukuk issuer, Axiata or principal subsidiary ceases or threatens to cease to carry on the whole or a substantial part of its business, subject to certain exceptions.
The group said in a statement that it does not consider that the proposed merger would give rise to a potential dissolution event but is seeking waivers out of an abundance of caution.
