The Board of Directors of AEON Credit Service (M) Berhad (“AEON Credit” or “Company”) wishes to announce that on 1 August 2024, the Company has subscribed for a further 100 million new ordinary shares at an issue price of RM1.00 each in the share capital of its 50%-owned associate company, AEON Bank (M) Berhad (formerly known as ACS Digital Berhad) (“AEON Bank”) for a total consideration of RM100 million (“Additional Subscription”), as mandated by the Company’s shareholders during the Extraordinary General Meeting held on 16 October 2023.

Following the Additional Subscription, the Company’s total shareholding in the share capital of AEON Bank has increased from 175 million ordinary shares to 275 million ordinary shares and its equity interest remains at 50% in AEON Bank, as the Additional Subscription is in proportion to all the shareholders’ shareholding in AEON Bank:

The cash consideration for the Additional Subscription is funded via internally generated funds. The Additional Subscription is for AEON Bank to fund its operating and capital expenditures and to continue to meet the minimum capital requirements as required by Bank Negara Malaysia.

The Additional Subscription will not have any effect on the share capital and substantial shareholders shareholdings of AEON Credit as the Additional Subscription does not involve any issuance of new ordinary shares of AEON Credit.

The Additional Subscription is not expected to have any immediate material impact on the net assets, gearing and earnings of AEON Credit Group for the financial year ending 28 February 2025.

The following Interested Directors have abstained from all deliberations and voting at the Company’s Board Meeting in relation to the Additional Subscription:

(a)        Mr. Daisuke Maeda – the Managing Director of AEON Credit, is also a Director of AEON Bank, and is an employee of the major shareholder, AEON Financial Service Co., Ltd. (“AFS”), who is seconded to AEON Credit.

(b)        Mr. Naoya Okada – the Non-Independent Non-Executive Director, is an Executive Officer of AEON Co., Ltd., and is the son of Mr. Motoya Okada, a director of AEON Co., Ltd., which is the major shareholder of the Company.

(c)        Mr. Tsutomu Omodera – the Non-Independent Non-Executive Director, is an Executive Officer of AFS.

This announcement is dated 1 August 2024.