KUALA LUMPUR, July 13 — Shares in Astro Malaysia Holdings Bhd plummeted to a record low today after the company was hit with an additional tax bill of RM734.88 million. According to The Edge, the stock fell as much as 10 per cent, or three sen, to 28 sen, and was trading at 29 sen by 9:05 am, giving the company a market valuation of RM1.5 billion on Bursa Malaysia. Trading volume surged this morning, with nearly 10 million shares changing hands.
The Inland Revenue Board (LHDN) issued notices of additional assessment for 2019-2023, amounting to RM735 million including penalties, due to disallowed deductions for production costs. Astro said the notices were served on its wholly-owned subsidiaries, Astro Shaw Sdn Bhd and Measat Broadcast Network Systems Sdn Bhd, for additional taxes amounting to RM22,011,627 and RM712,865,984 respectively. Astro, whose debts exceeded its assets by 13 sen as of April, has 30 days to appeal the decision and may pursue legal action.
Kenanga Investment Bank warned that the additional tax liability could erode Astro shareholders’ funds by 65 per cent to RM434 million in the worst-case scenario. The company’s shares have fallen 29 per cent this year, facing stiff competition from over-the-top media services like Netflix and weak consumer and business sentiment affecting advertising revenue growth.
