KUALA LUMPUR: Astro Malaysia Holdings Bhd's wholly owned subsidiary, MEASAT Broadcast Network Systems Sdn Bhd (MBNS), has entered into a conditional sale and purchase agreement (SPA) with Maxis Broadband Sdn Bhd to dispose of its broadband business assets for RM83 million.
Maxis Broadband is a wholly-owned subsidiary of Maxis Bhd.
The integrated media and entertainment group said the disposal is deemed to be a related party transaction (RPT) in view of the interests of the interested directors, major shareholders and persons connected with them.
"Barring unforeseen circumstances, the proposed disposal is expected to be completed by the second quarter of 2027," it said in a stock exchange filing.
Astro Malaysia said the proposed disposal provides the group with an opportunity to monetise and realise the value of the assets whilst reducing its exposure to the operational and commercial risks associated with operating a retail broadband business.
"The group is expected to record a gain on the disposal of the broadband business assets, thereby strengthening the cash position of Astro Malaysia and providing greater flexibility to redeploy resources towards its core businesses, being content, entertainment, advertising and related consumer businesses.
"The board believes that the proposed disposal will allow Astro to allocate capital and management resources more efficiently towards the company's long-term strategic objectives, including investments in content, product and technology for continued excellence in customer experience," it added.
The group said the proceeds from the disposal would be used for working capital over 36 months, while the remaining amount would cover expenses related to the proposed disposal within three months of its completion.
"Furthermore, the proposed disposal will not have any effect on the share capital of Astro and the shareholding of the substantial shareholders of the company as it does not involve any issuance of shares in the group," it added.
Public Investment Bank Bhd has been appointed as the independent adviser to advise the non-interested shareholders and non-interested directors of Astro Malaysia on the disposal.
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