KUALA LUMPUR: Maxis Bhd
is taking full control of Advanced Wireless Technologies Sdn Bhd (AWT) by acquiring the remaining 25% in the wireless multimedia related services provider from Astro Malaysia Holdings Bhd’s unit MBNS Multimedia Technologies Sdn Bhd (MMT) for RM15.83mil.
The teleccomunications company told Bursa Malaysia that it or its related corporations would also buy goods and services totalling RM3mil from MMT and/or its related corporations as part of the deal.
AWT wholly owns UMTS (M) Sdn Bhd (UMTS), the holder of a 2100MHz spectrum assignment from Malaysian Communications and Multimedia Commission for 15 years expiring on April 1, 2018.
Maxis said the transaction was an important step in the Maxis Bhd group’s transformation to streamline its structure with the objective of providing it with greater operational agility and flexibility to respond quickly in a fast evolving telecommunications market.
“By acquiring the remaining 25% stake in AWT and thus having full ownership of AWT, Maxis Group could accelerate its decision-making on matters surrounding the 2,100MHz spectrum assignment and other priority items that support its business plan and commercial objectives,” it said.
Astro, meanwhile, said it was selling the AWT shares to divest its interest from a business that was not part of the Astro group’s core businesses.
“In the event of renewal of the 2100 MHz spectrum assignment, the cost for renewing the spectrum assignment is expected to be high and there may be additional funding required from AWT’s shareholders. In view that the 3G spectrum business is not part of the core business of the Astro Malaysia Holdings group, it is commercially viable for MMT to divest its investment in AWT before the expiry of the spectrum assignment,” it said.
“Therefore, the transaction is an opportunity for the group to monetise its investment to raise funds for its working capital to pursue its core business strategies and strengthen further the balance sheet of the group.”
According to Astro, it will incur an estimated one-off loss on disposal of the AWT shares of about RM12.09mil based on the carrying value of investment in AWT of RM27.92mil as at its last audited financial statements for the financial year ended Jan 31, 2016.
The transaction is a related-party one, as T. Ananda Krishnan (TAK) and PanOcean Management Ltd -- the trustee of a discretionary trust whose beneficiaries are members of the family of TAK and foundations -- have deemed interests in Astro Malaysia and Maxis Bhd.
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