News

The Board of Directors of ASB wishes to announce that Paydee Sdn. Bhd. ("Paydee"), an indirect wholly-owned subsidairy of ASB, has entered into a Client Services and Trademark License Agreement ("CSTLA") with Visa Worldwide for, amongst others, its participation in the Visa payments network, as part of its expansion plan to operate its financial service programme/business. 

As security for Paydee to perform or discharge its obligations as described in the CSTLA, ASB has entered into a Guarantee and Indemnity Agreement ("Agreement") with Visa Worldwide. The Company's liability under the Agreement shall be limited to USD25 million (equivalent to approximately RM117 million) in the aggregate, inclusive of all interest, fees, costs and expenses arising from or in connection with the Agreement ("Provision of Guarantee and Indemnity") .  

The Provision of Guarantee and Indemnity will not have any effect on the issued share capital and substantial shareholders' direct and/or indirect shareholding of ASB. In addition, the Provision of Guarantee and Indemnity will not have any material effect on the earnings, net assets and gearing of ASB Group for the financial year ending 31 December 2023, assuming no amount is due or become payable by the Company.

Notwithstanding the above, in the event that Paydee fails to perform its obligations as described in the Agreement, ASB will be required to assume the obligations of Paydee up to the aforesaid amount of USD25 million (equivalent to approximately RM117 million). 

None of the Directors, major shareholers or persons connected with them have any interest, direct or indirect, in the Provision of Guarantee and Indemnity.    

This announcement is dated 26 September 2023.