Digi and Maxis to fund spectrum
By Digital News Asia November 2, 2016
- Digi's net debt to Ebitda ratio will remain at below 1.0x
- Maxis net debt to Ebitda ratio will remain at approximately 2x
MAXIS Bhd and Digi.Com Bhd, two of the country's top three mobile operators, said that they will fund the one-time spectrum fee of RM816.7 million and RM598.5 million, respectively, mainly via external borrowings.
"The board of directors of Digi has decided to fund the one-time fee component mainly through its existing borrowing facilities and to maintain healthy net debt-to-Ebitda ratio below 1.0x," said Digi in its filing to Bursa Malaysia on Nov 1.
Digi's announcement came a day after Maxis announced how it plans to finance the one-time fee.
"After thorough consideration of all factors including future cash flow projections and reinvestment opportunities, the board of Maxis has decided to fund the fee mainly through external borrowings," said Maxis in its filing to Bursa Malaysia on Oct 31.
"The gearing level (net debt-to-Ebitda) will remain at approximately 2x."
On Nov 1, Digi accepted the Malaysian Communications and Multimedia Commission's (MCMC) letter of offer in respect of the spectrum assignments for 2 x 5MHz of 900MHz and 2 x 20MHzof 1800MHz spectrum bands for 15 years.
Meanwhile, Maxis accepted the letters of offer from the MCMC for the spectrum assignments of 2 x 10MHz of 900MHz and 2 x 20MHz of 1800MHz.