Maxis to stop practice of borrowing for dividends

PETALING JAYA: Maxis Bhd plans to stop its practice of borrowing lots of money to part-fund its dividend payments from 2015 onward, signalling a possible dip in its payouts.

Maxis chief executive officer Morten Lundal (pic) said the company would prefer to make its dividend payments solely from the free cash flow it generates and hence cannot guarantee that the telco would be able to continue the same level of dividends from 2015 onward.