Maxis to fund RM816.75mil spectrum fee via external borrowings

Maxis Head of Sales & Services Tan Lay Han and photos of Maxis' new customer service centre.....Sam Tham/Star.

KUALA LUMPUR: Telecommunication services provider, Maxis Bhd, will fund its 2x10MHz of 900MHz and 2x20MHz of 1,800MHz spectrum fee through external borrowings.

It said the spectrum was offered by the Malaysian Communications and Multimedia Commission for a lump sump full settlement fee of RM816.75mil.

“After a thorough consideration of all factors including future cash flow projections and reinvestment opportunities, the board of Maxis has decided to fund the fee mainly through external borrowings. 

“The gearing level, that is, net debt to earnings before interest, tax, depreciation and amortisation, will remain at two times,” the company said in a filing with Bursa Malaysia on Monday.

Maxis said the borrowings were not expected to have material impact on its consolidated earnings, earnings per share and net assets. - Bernama