King & Wood Mallesons (KWM) has advised Malaysia’s digital marketing company, Axiata Digital Services (ADS), on the formation of an alliance with Japanese multinational conglomerate SoftBank to expand its digital analytics, data and artificial intelligence marketing business in South and Southeast Asia.
SoftBank will invest USD60 million in Axiata Digital Advertising (ADA) – a subsidiary of Malaysian multinational telecoms conglomerate Axiata Group, and held by ADS – giving ADA an initial valuation of USD260 million. Post investment, Softbank will own a 23% stake in ADA, while ADS will maintain a 63% stake.
KWM advised on all aspects of the deal, including the fundraising from SoftBank and the terms of the shareholder agreement between ADS, SoftBank and the existing minority shareholder, Sumitomo Corporation. The team was led by partner and head of corporate for South and Southeast Asia, Jake Robson in Singapore, with the help of partner Nick Davies in Singapore and senior associate Azlan Mohamed Noh in Sydney.
“As the world begins to emerge from the challenges of covid-19, many global businesses are seeking digital solutions to improve their products and services,” said Robson. “The alliance with SoftBank will enhance ADA’s ability to develop cutting-edge AI and data analytic solutions to help businesses to pivot and unlock opportunities in the digital economy.”