CelcomDigi Flat At Midday On RM202 Mln DNB Shareholder Advance

KUALA LUMPUR, April 30 (Bernama) -- Shares of CelcomDigi Bhd were unchanged at the midday break following its announcement of an additional RM202 million shareholder advance to Digital Nasional Bhd (DNB).

As of 12.30 pm, the stock held steady at RM2.99, with 674,000 shares traded.

Public Investment Bank Bhd said DNB’s other contributing shareholders, Maxis Bhd and YTL Communications Sdn Bhd, were also offered the additional shareholder advance at the same quantum.

It said the additional shareholder advance will be used by DNB to pay upfront spectrum fees as part of the spectrum acceptance and to meet its working capital requirements.

“We are neutral on this transaction, which is viewed as part of its access agreement prepayments.

“We believe that there is still room for CelcomDigi to further optimise its integration with potential savings from the information technology (IT) systems and operations, which could further reap benefits from the merger and accelerate average revenue per user repair and further strengthen its market position,” it said in a note today.

Public Investment Bank said some of CelcomDigi’s strategies are upselling and offering value-added services such as cybersecurity and IT solutions, while it further enhances its efforts in retaining valuable customers.

“That said, we upgrade the stock to ‘Trading Buy’ from ‘Neutral’ given the share price retracement, and maintain our target price of RM3.50 as the additional shareholder advance is not expected to have any material impact on CelcomDigi’s earnings, net assets and gearing.

“Its ability to pay out dividend is also unaffected given the healthy cashflow, with full financial year 2026 dividend yield estimated at 4.5 per cent,” it added.

-- BERNAMA