The Maxis fibre business is set for a small lift after flat quarters. The proposed acquisition of Astro’s broadband business could expand Maxis’ fibre customer base by about 22%, if it keeps every account. On 26 October, Maxis shares were slightly higher at RM3.61, up seven sen or 2%, at 10.30am.
How Big Is the Maxis Fibre Boost From the Astro Deal?
Will Maxis Keep All Astro Broadband Subscribers?
The 22% lift assumes Maxis retains every account it takes over. Phillip Capital, RHB Investment Bank and Kenanga Investment Bank all based their estimates on this scenario.
What Did Phillip Capital Say About the Deal?
Phillip Capital said the enlarged customer base should strengthen Maxis’ position in fixed broadband. It also expects the deal to add recurring revenue.
What Is the Astro Broadband Deal Worth to Maxis?
- Price cap: RM83 million, adjusted by the number of subscribers transferred
- Funding: internally generated funds, with Maxis holding over RM800 million in cash at end of June
- Earnings contribution: RM2.5 million for 2027, according to Kenanga
Kenanga describes the deal as a capital-light avenue to scale Maxis’ home fibre business. The RM2.5 million earnings estimate is modest against that cash balance.
Why Is Astro Selling Its Broadband Business to Maxis?
Kenanga says Astro is monetising a “sub-scale, non-core business” that needs ongoing spending. That spending covers wholesale fibre access, subscriber acquisition and retention.
Astro estimates a net gain of RM31.4 million from the disposal. The gain is after derecognising net assets of the business, which started in 2022 as part of Astro’s expansion into fixed broadband.
How Are Analysts Rating Maxis Shares After the Deal?
Kenanga Investment Bank is neutral on the deal for both Maxis and Astro. Bloomberg data show 14 ‘hold’ and nine ‘buy’ calls out of 23 analysts it tracks.
The average 12-month target price is RM4.04, compared with the RM3.61 share price on 26 October. Both KL:MAXIS and KL:ASTRO are worth monitoring as the deal progresses. For a broader screening approach, see AI Stock Analysis for Malaysians.
Why Did Maxis Shares Rebound From 2026 Lows?
Maxis shares have rebounded off 2026 lows. Investor concerns over 5G competition and the share of losses from wholesale network operator Digital Nasional Bhd had weighed on the stock.
Key Takeaways
- The Maxis fibre business could grow about 22% to over 991,000 subscribers if all Astro accounts are retained.
- The price is capped at RM83 million, adjusted by subscribers transferred, and funded from internal cash.
- Kenanga estimates a RM2.5 million earnings contribution for 2027, while Astro estimates a RM31.4 million net gain.
- Bloomberg data show 14 hold and nine buy calls from 23 analysts, with an average target of RM4.04.
Disclaimer: This article is for information only and is not financial advice. Analyst ratings and target prices are as attributed and may change. Do your own research before making any investment decision.
Frequently Asked Questions
How many fibre subscribers will Maxis have after the Astro deal?
Maxis could have over 991,000 fibre subscribers, an increase of about 22%, if it retains all accounts from Astro’s broadband business. Phillip Capital, RHB Investment Bank and Kenanga Investment Bank all used this estimate.
How much is Maxis paying for Astro’s broadband business?
The total price is capped at RM83 million and will be adjusted by the number of subscribers transferred. Maxis will fund it from internally generated funds and had cash of over RM800 million at end of June.
What net gain does Astro expect from selling its broadband business?
Astro estimates a net gain of RM31.4 million from the disposal, after derecognising net assets of the business. The business started in 2022 as part of Astro’s expansion into fixed broadband.
What is the average target price for Maxis shares?
The average 12-month target price is RM4.04, according to Bloomberg data covering 23 analysts. Maxis shares traded at RM3.61 at 10.30am on 26 October.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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