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Smart inks loan for cut of Sabay

Smart inks loan for cut of Sabay

Cambodian mobile operator Smart Axiata has entered into a convertible debt agreement with Sabay Digital Plus Co Ltd (SDP) in which it will provide a loan of $1.5 million that will be converted into ordinary shares in the local online news and entertainment company, according to release yesterday by Axiata Group Berhad, Smart’s Malaysian parent company.

According to the release, the agreement includes a call option agreement that gives Smart Axiata an option to purchase additional shares in SDP from parent company Sabay Digital Group Pte Ltd up to an aggregate 30 percent stake, while a price will be agreed upon to purchase all or part of SDP’s remaining issued and paid-up capital.

“The proposed investments in SDP are aligned with Axiata’s digital services strategy and Smart’s Strategy Framework 2017 where digital services and content are key focus. Combining Smart’s data leadership with SDP’s compelling portfolio such as its news portal and Video on Demand (VoD)/Over the Top (OTT) services will enable Smart to play a central role in the emerging digital content and online video value chain in Cambodia,” Axiata said in the release.

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