The appointment of U Mobile Sdn Bhd to establish Malaysia’s second 5G network adheres to the equity requirements under the network facility provider (NFP) and network service provider (NSP) licences, affirmed Communications Minister Fahmi Fadzil. Minister Fahmi clarified that under NFP and NSP licences, foreign equity is capped at 49%, and Bumiputera ownership must be at least 30%. U Mobile currently complies with these requirements, with plans to reduce foreign ownership to 20% to ensure stronger local investor control, which aligns with the licence conditions. On Nov 1, the Malaysian Communications and Multimedia Commission (MCMC) selected U Mobile for Malaysia's second 5G rollout. This decision drew attention, as U Mobile has a smaller subscriber base and less financial strength compared to larger players like Maxis Bhd and CelcomDigi Bhd. The selection process, Fahmi emphasized, was conducted through a "beauty contest" method by the MCMC, which assessed busi
Boeing Co is set to launch a capital raise as early as Monday, aiming to secure more than US$15 billion in funding, according to sources familiar with the matter. The move is designed to bolster the company’s liquidity as it navigates the impact of a crippling strike and ongoing production issues.
The capital raise will likely include a mix of shares and debt that can be converted into equity, and the total amount could increase depending on investor demand. The airplane maker's advisers have been lining up potential investors for the offering, though timing and specifics of the transaction may still change.
This potential US$15 billion equity raise would be the largest since SoftBank's stake sale in T-Mobile US Inc in 2020, data compiled by Bloomberg shows. Boeing recently received clearance from the US Securities and Exchange Commission to raise as much as US$25 billion in equity and debt, a move that would help the company avoid a downgrade to junk credit status.
Boeing is burning through significant cash, with US$4 billion expected in the fourth quarter, bringing its total cash outflow to about US$14 billion for 2024. The company anticipates continued cash burn through the first half of next year as it restarts production, including the assembly of its crucial 737 Max jetliner.
The strike, now in its seventh week, continues to strain Boeing’s operations. Factory workers recently rejected a contract offer, and the company is planning to cut its workforce by 10%, including reductions among executives and managers.
Boeing has also put a new US$10 billion credit agreement in place to secure short-term liquidity and is reviewing its broad portfolio, including the future of its Starliner space capsule program.
Boeing shares have dropped more than 40% this year, as the company grapples with rising losses and missed revenue expectations.
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