Malaysia's Maxis Plans to Issue 300 Million New Shares

KUALA LUMPUR, Malaysia--Malaysian mobile-phone operator Maxis Bhd. (6012.KU) said Monday it plans to issue 300 million new shares in an effort to strengthen its financial position.

The Wall Street Journal reported earlier Monday that Maxis, controlled by Malaysian tycoon Ananda Krishnan, is selling 300 million new shares in a move that could raise as much as $403 million, citing a term sheet.

The actual amount of proceeds to be raised from the proposed private placement can't be determined at this juncture, Maxis said in a local stock exchange filing.

The shares will be priced between 5.52 ringgit ($1.29) and MYR5.75 each, according to the term sheet, representing a discount of up to 6.1% to the closing price of MYR5.88 on Friday.

Maxis said the benefits of the fundraising will include enhanced cash flows, liquidity, interest costs savings and improved gearing levels.

It will also create financial flexibility for Maxis to fund its future spectrum-assignment fees and expansion, the company added.

Maxis said its board expects the proposed private placement to be completed by end of July 2017.

Shares of Maxis were suspended from trading Monday pending the announcement.

Shares of the company have fallen 1.7% so far this year.

CIMB is the principal adviser, joint global coordinator and joint bookrunner for the deal. Credit Suisse is also the joint global coordinator and joint bookrunner, according to the filing.

Write to Yantoultra Ngui at Yantoultra.Ngui@wsj.com.

(END) Dow Jones Newswires

June 19, 2017 03:16 ET (07:16 GMT)