Axiata strives to raise our shareholder value by striking a balance between
short-term profitability and long-term growth.
| Type | Announcement |
| Subject | OTHERS |
| Description | ENTRY BY CELCOM AXIATA BERHAD INTO MASTER COLLABORATION AGREEMENT WITH ALTEL COMMUNICATIONS SDN BHD |
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ENTRY BY CELCOM AXIATA BERHAD INTO MASTER COLLABORATION AGREEMENT WITH ALTEL COMMUNICATIONS SDN BHD
1.0 INTRODUCTION Celcom Axiata Berhad (“Celcom”), a wholly-owned-subsidiary company of Axiata Group Berhad (“Axiata”), had on 4 July 2013 entered into a Master Collaboration Agreement (“Master Agreement”) with Altel Communications Sdn Bhd (“Altel”) for the purpose of collaborating to develop, establish, build, operate and manage shared infrastructure for the provision by both Celcom and Altel (collectively referred to hereafter as “Parties”) of communication services in Malaysia (“Proposed Collaboration”). 2.0 BRIEF INFORMATION ON THE PARTIES Celcom was incorporated in Malaysia on 5 January 1988. The issued and paid-up share capital of Celcom stands at RM1, 237,534,681 comprising 1,237,534,681 ordinary shares of RM1.00 each. As Malaysia’s premier mobile telecommunications provider, it has the widest network covering over 98% of the population. Besides leading in mobile broadband, Celcom is moving towards integrated multi-access and multimedia services, in line with evolving technologies and consumer behaviour in Malaysia. Altel was incorporated in Malaysia on 26 March 2012. Its issued and paid-up share capital currently stands at RM 500,000 comprising 500,000 ordinary shares of RM1.00 each and is primarily involved in the business of providing various telecommunications and multimedia services in Malaysia. 3.0 SALIENT TERMS OF THE MASTER AGREEMENT The Master Agreement defined the scope and principles for the implementation of the Proposed Collaboration in the following areas:- i) Spectrum Sharing Upon the execution of the Master Agreement, Celcom and Altel shall pool its respective 2x 10MHz bandwidth of the LTE2600 MHz spectrum awarded by the Malaysian Communications and Multimedia Commission ("MCMC") into a common pooled spectrum for the exclusive use of both the Parties for the establishment, deployment, building, construction, operation and maintenance of a Wireless Business running on or using the Long Term Evolution technologies. In addition to the above, Altel which has been awarded by the MCMC 2 x 20 MHz of the LTE2600 MHz spectrum band will consider request by Celcom for use of the remaining 2 x 10MHz spectrum band from Altel (“Additional Spectrum Band”). ii) The Master Agreement also encapsulates the general terms and conditions with regards to the arrangement for Altel to appoint Celcom as the exclusive infrastructure and wholesale provider of the Mobile Virtual Network Operator ("MVNO") Services to enable Altel to operate as a MVNO in Malaysia, for the provisions of domestic roaming services and RAN sharing arrangements between Parties all of which are subject to further negotiations and eventual execution of proposed individual definitive agreements being signed by the Parties in furtherance of the efforts between Celcom and Altel to effect the Proposed Collaboration. 4.0 RATIONALE FOR THE ENTRY INTO THE MASTER COLLABORATION AGREEMENT The rationale of this collaboration is to establish a smart alliance that will benefit both Celcom and Altel in achieving their short and long term business goals. The Proposed Collaboration is also in line with the Government’s call for telecommunication companies/mobile operators to join forces to accelerate broadband penetration in the country and enhance the digital lifestyle of Malaysians. In the Proposed Collaboration, the Parties aim to maximise the usage of the allocated spectrum with the view to provide the best broadband speed in the market. 5.0 FINANCIAL EFFECTS The entry by Celcom into the Master Agreement does not have any effect on the issued and paid-up share capital of Axiata and is not expected to have any material effect on the earnings, gearings and net assets of the Axiata Group for the year financial ending 31 December 2013. 6.0 APPROVALS OF SHAREHOLDERS The Proposed Collaboration is not subject to the approval of the shareholders of Axiata. 7.0 DIRECTORS’ AND MAJOR/SUBSTANTIAL SHAREHOLDERS’ INTEREST None of the directors and major shareholders of Axiata and/or persons connected to them have any interest direct and/or indirect in the Proposed Collaboration. |
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| Company Name | AXIATA GROUP BERHAD |
| Stock Name | AXIATA |
| Date Announced | 4 Jul 2013 |
| Category | General Announcement |
| Reference No | AG-130704-37462 |