PETALING JAYA: Astro Malaysia Holdings Bhd as signed an agreement with Measat Communication Systems Sdn Bhd (MCSSB) for the utilisation of transponder capacity on the MEASAT-3d (M3d) satellite for US$360 million (about RM1.49 billion) cash.
In a filing with Bursa Malaysia, the group said it has also signed an agreement with Measat International (South Asia) Ltd (MISAL) for the early termination of an earlier agreement for the utilisation of transponder capacity on the MEASAT-3b (M3b) satellite. MCSSB and MISAL are wholly owned subsidiaries of Measat Global Bhd.
These are deemed as related party transactions as Tan Sri Ananda Krishnan is major shareholder of Astro and Measat Global.
Under the first agreement, MCSSB will supply Astro’s wholly owned subsidiary Measat Broadcast Network Systems Sdn Bhd (MBNS) with 12 transponders on the M3d satellite for 15 years.
The US$360 million was calculated based on a utilisation fee of US$2 million per year per transponder for 15 years. After taking into account fixed and variable discounts of US$9 million each, the fees amount to US$342 million. MBNS will fund the fees from internally generated funds and/or borrowings.
Meanwhile, the second agreement is for the early termination of an agreement dated April 12, 2018 entered into between MBNS and Measat International (South Asia) Ltd (MISAL) for the utilisation of transponder capacity on the M3b satellite.
At present, MBNS is leasing 42 transponders on Measat satellites for its required transponder capacity to provide direct-to-home (DTH) and Internet access services to its subscribers.
“However, the lease for 12 transponders on the M3 satellite and six transponders on the M3a satellites will expire on Feb 22, 2022 and July 20, 2024 respectively. After the expiry, MBNS will only have the use of transponders on one operational satellite that is, the M3b satellite,” said Astro.
The new agreement will allow MBNS to use the transponder capacity on the M3d satellite, which is expected to be launched in 2022.
“In addition, with the improvement in video compression technology, it is expected that the 12 transponders on the M3d satellite will be able to replace the 18 existing transponders on the M3 and M3a satellites,” it added.
Astro said that the proposed early termination will allow MBNS to terminate the lease of the six transponders on the M3b satellite which it no longer requires.
To recap, the M3b 2018 agreement involves the lease of six transponders on the M3b satellite for a period of 12 years up to June 11, 2030, for a total fee of US$22.5 million. Following the early termination, the US$8 million fee which was scheduled for payment on July 1 will be deferred until the termination date where the amount will be deducted from the refund sum.
