Axiata accepts spectrum assignment
PETALING JAYA: Axiata Group Bhd has accepted its spectrum assignment with full settlement of spectrum fees amounting to RM816.75 million by this financial year.
Axiata had in August received a letter of offer via Celcom Axiata Bhd in respect of the allocation of 2x10MHz of 900MHz and 2x20MHz of 1800MHz bands effective July 1, 2017.
In a filing with Bursa Malaysia, Axiata noted that Celcom will be funding the spectrum fees mainly with internal funds and existing sukuk programme.
Axiata said the borrowings are not expected to have any material impact on its consolidated earnings, earnings per share and net assets.
“The gearing level, net debt-to-ebitda (earnings before interest, taxes, depreciation and amortisation) of Axiata, will be below 2.0 times,” it noted.
On a separate note, Kenanga Research said for Digi.com Bhd, the spectrum assignments of 2 x 5MHz of 900MHz and 2x 20MHz of 1800MHz for 15 years will help the group address the current relatively weak indoor signal issue as well as to provide greater geographic coverage from the second half of 2017.
Kenanga Research has trimmed Digi’s FY16 and FY17 earnings forecast marginally by 0.1% and 1.2% after imputing higher finance cost. It is maintaining an “underperform” call on Digi with an unchanged target price of RM4.79.