Maxis is set to acquire Astro’s broadband business for up to RM83 million, following a conditional sale and purchase agreement (SPA) signed between their respective subsidiaries. The proposed deal will see Maxis Broadband Sdn Bhd, a wholly owned subsidiary of Maxis, take over the broadband business assets of MEASAT Broadcast Network Systems Sdn Bhd (MBNS), which is wholly owned by Astro Malaysia Holdings.

According to separate Bursa Malaysia filings by both companies, the acquisition covers MBNS’ entire broadband subscriber base, which stood at 178,631 active subscribers as of 28 February 2026. It also includes the associated contracts, software, equipment and inventories, but excludes Astro’s brand name, trademarks and goodwill.

Maxis said the acquisition aligns with its strategy to expand its converged mobile and fixed connectivity offerings. By bringing the subscriber base under its operations, the telco expects to expand its fibre broadband reach and create more opportunities to cross-sell and upsell its existing services to households.

Astro To Refocus On Content And Entertainment

For Astro, the proposed disposal is part of its efforts to refocus resources on its core content, advertising and entertainment businesses. The group expects to record a net gain of RM31.4 million from the transaction after accounting for the derecognition of net assets.

Astro launched its broadband business in 2022 as part of its expansion beyond pay-TV services. As of 30 September 2026, the broadband business assets had a net book value of RM36.6 million, while the cost of investment in those assets stood at RM28 million.

The proceeds from the disposal are expected to be used primarily for working capital and general corporate purposes, including operational expenses, maintenance capital expenditure and administration. Astro has also allocated RM1.65 million to cover transaction-related expenses, including professional fees, regulatory fees and the costs of convening an extraordinary general meeting.

Final Purchase Price Depends On Transferred Subscribers

While the consideration is capped at RM83 million, the final amount will depend on how many subscribers are successfully transferred to Maxis upon completion. According to The Star, Astro will receive the full payment if at least 155,000 subscribers are transferred, with the consideration decreasing to RM82 million for 150,000 to 154,999 subscribers and RM80 million for 145,000 to 149,999 subscribers.

If fewer than 145,000 subscribers are transferred, the consideration will be reduced by RM500 for each subscriber below that threshold. Maxis, meanwhile, will fund the acquisition through its internally generated funds.

Both parties will also enter into post-completion support agreements to facilitate subscriber migration and the integration of network equipment, with the aim of maintaining service continuity throughout the process.

Astro Fibre Stopped Accepting New Sign-Ups

To recap, Astro has already stopped onboarding new customers for its Astro Fibre packages and offerings since February 2026, until further notice. At the time, the company said the pause would affect new sign-ups, while existing customers could continue using their broadband services.

The transaction remains subject to Astro obtaining shareholder approval and Maxis receiving written notification from the Malaysian Communications and Multimedia Commission (MCMC) confirming that the proposed sale will not be formally assessed. Both companies expect the deal to be completed by the second quarter of 2027, barring unforeseen delays.

(Source: The Star / Maxis)