KUALA LUMPUR: Astro Malaysia Holdings Bhd has inked an agreement to pay US$22.5 million in cash (RM87.2 million) to MEASAT Global Bhd for the use of six additional transponders on the latter's MEASAT-3b satellite.

Astro's wholly-owned unit MEASAT Broadcast Network Systems Sdn Bhd (MBNS), inked the agreement with MEASAT Global’s unit MEASAT International (South Asia) Ltd (MISAL) today to lease the six additional transponders for 12 years, starting from June 8 this year.

MBNS currently is leasing 18 transponders from MISAL.

During the term, MBNS shall have the option to put one or more of the transponders to MISAL to sub-lease to third party customers (put transponders), Astro said in a stock exchange filing today.

“MISAL shall share with MBNS the revenue derived from the sub-lease of the put transponders less any taxes payable by MISAL, and 10% of the remaining amount on an 80:20 (MBNS:MISAL) basis of the net revenue,” the group said.

Astro said the new bandwidth from the additional transponders could be used to offer a more diverse near video-on-demand services and to optimise video streaming infrastructure through push video-on-demand.

“Following the proposed utilisation, MBNS’s transponder capacity will increase from 36 transponders to 42 transponders,” it said.

Being integral to MBNS’ day-to-day operations, the proposed utilisation of the transponders is expected to contribute to Astro’s future earnings.

The agreement is subject to the approval of Astro’s shareholders at the group’s upcoming annual general meeting.

Shares in Astro closed up 5 sen or 2.45% at RM2.09 today, giving the group a market capitalisation of RM10.48 billion.