PETALING JAYA: Axiata Digital, the digital services arm of Axiata Group Bhd today announced a strategic investment of US$70 million (RM299.355 million) by Great Eastern to boost its fast-growing digital financial services (DFS) business across the region.
In a joint statement, the parties said with the investment, Great Eastern takes a 21.875% stake in the holding company for Axiata Digital’s DFS business, with Axiata Digital Services Sdn Bhd holding the balance.
The company, called Boost Holdings Sdn Bhd, will comprise of: Boost, Boost Indonesia, with 544,000 merchant touchpoints, Aspirasi, a micro-financing and micro-insurance digital financing provider, - Trust Axiata Digital Limited, a joint venture with a local bank in Bangladesh, and a launchpad for bringing digital financial services to other Axiata markets.
“Proceeds from the investment will fund expansion plans for Axiata Digital’s DFS business over the next year in Malaysia and the region, which includes securing Boost’s next level push to develop its ecosystem of merchants and customers, enhancing Aspirasi’s credit scoring technology, and potentially housing the digital bank,” it said.
Earlier this year, Axiata Digital expressed interest in the digital banking licenses to be offered by Bank Negara Malaysia and has begun work to prepare for an application.
The transaction is expected to be completed in the next few months, subject to relevant regulatory approvals.
This marks the third strategic investment secured by Axiata Digital from financial industry players.
In 2018, Sumitomo placed an investment of US$20 million (RM 85.53 million) into its digital advertising business, ADA, and in 2019, Mitsui channeled an investment of up to US$50 million (RM213.825 million) into the company.
source https://www.thesundaily.my/business/great-eastern-invests-rm2994m-in-axiata-acquires-21875-stake-BA2626276
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