MyKris sells managed network services unit to Maxis in RM157mil deal

KUALA LUMPUR: MyKris International Bhd has entered into a RM157.5mil deal to dispose its high-speed wireless and wired network services unit, the company's core business, to Maxis Bhd.

The deal would require the approval of at least 75% its shareholders.

MyKris said the proposed disposal, if it goes through, would result in a potential pro forma gain of RM102mil for the company.

"In conjunction with the Proposed Disposal, the Board is also considering the quantum of dividends to be distributed to shareholders and other possible steps to be taken to expeditiously return excess capital to shareholders, further details of which will be announced by the Board at a later stage," MyKris said a filing today.

On Wednesday, the company and subsidiary MyKris Net (MSC) Sdn Bhd have entered into a conditional share sale agreement with Maxis Broadband Sdn Bhd to dispose their entire 100% stake in MyKris Asia Sdn Bhd.

The deal valued MyKris Asia at RM115mil, with subsequent payments of up to RM42.5mil upon certain revenue targets being achieved.

MyKris was listed on the Leap market in 2018.

"The Proposed Disposal represents a timely opportunity for MyKris to realise its investments in MyKris Asia," the company said.

Meanwhile, in a separate filing with Bursa Malaysia today, Maxis said that the deal would enable the telecommunication company to enhance and expand its managed network portfolio with end-to end field delivery and support.

"With over 20 years of experience and significant reputation in the local MNS market, the integration of MyKris Asia will allow Maxis to boost its current wide area network (WAN) offering and introduce new capabilities to its local area network (LAN) portfolio," it said.

The proposed acquisition was targeted for completion in the first quarter of 2022.