KUALA LUMPUR (May 28): The entry of a new potential investor for Axiata Group Bhd's (KL:AXIATA) financial technology (fintech) arm Boost Holdings Sdn Bhd is currently pending regulatory approval and expected to be completed by year-end, rather than in the current quarter.
“The transaction is pending regulatory approval. We’re optimistic that it will be complete within this year,” group managing director and chief executive officer Vivek Sood said in an email response to The Edge without disclosing the identity of the investor.
“Material updates will be disclosed as appropriate in a timely manner,” he added.
According to data from the Companies Commission of Malaysia (SSM), Boost is 77.76%-owned by Axiata. Great Eastern Digital Pte Ltd, a wholly-owned unit of Singapore-listed Great Eastern Holdings Ltd, holds a 19.89% stake, while Japanese trading house Mitsui & Co Ltd owns the remaining 2.33%.
In a filing with the Singapore Exchange (SGX) in September 2023, Great Eastern noted that its stake had declined from 21.875% to 19.898% following an increase in Boost’s issued and paid-up share capital.
Back in 2020, Axiata sold a 21.875% stake in Boost to Great Eastern for US$70 million (RM296.4 million), valuing the fintech company at around US$320 million at the time.
Boost’s business spans several entities, including Boost eWallet, Boost Credit and Boost Connect, forming a comprehensive regional fintech ecosystem that covers payments, credit and embedded finance solutions.
Boost is also the majority shareholder in Boost Bank Bhd, a digital banking joint venture with RHB Bank Bhd (KL:RHBBANK). Boost holds a 60% stake, with RHB owning the remaining 40%. Boost Bank commenced operations in June 2024 and is among five licensed digital banks in Malaysia.
For the financial year ended Dec 31, 2024 (FY2024), Boost narrowed its net loss to RM165.99 million from RM179.24 million in FY2023, while revenue grew 2.5% to RM155.82 million from RM152 million a year earlier.
Axiata attributed RM69.2 million of its FY2024 loss to start-up expenses related to Boost Bank, while non-bank operations recorded a narrower loss of RM96.8 million.