Ax­i­ata ac­cepts spec­trum as­sign­ment

The Sun (Malaysia) - - SUNBIZ -

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.

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