From biz.thestar.com.my/news/story.asp?file=/...925&sec=business

Move to extend suspension may raise speculation of it being taken private again

KUALA LUMPUR: Trading in Astro All Asia Networks plc shares will continue to be suspended today and tomorrow at the company’s request, pending a material announcement.

“The company had on March 15, requested for a suspension of trading of its securities from 9am on March 16 (today) to 5pm on March 17 pending an announcement of a corporate proposal involving the shareholders of the company,” Astro said in a statement.

Astro shares were suspended from trading from 2.30pm yesterday pending a material announcement, the company said in a filing with Bursa Malaysia.

The counter was last traded at RM3.56, up 8 sen on a volume of 4.5 million shares.

Year-to-date, the counter had gained more than 18%. The stock has been generally rising since hitting an all-time low of RM1.80 in March 2009.

The development is likely to fan rumours of the satellite pay-TV operator being taken private again.

Astro has been dogged by talk of being a privatisation candidate for more than three years, although speculation has proven to be baseless so far.

In 2007, billionaire T. Ananda Krishnan took its sister company, Maxis communications Bhd, private for RM16.4bil while investors speculated Astro would be the next to be privatised.

Talk of a corporate exercise resurfaced last year when Maxis Bhd was listed on the main board of Bursa Malaysia.

However, it was promptly denied by Astro.

Uncertainties surrounding its investment in new markets such as Indonesia and India, substantial capital spending which may strain cashflow, and rising gearing to fund its rising spending needs, were some of the reasons cited for the privatisation, the same premise as that of the Maxis privatisation.

There is also talk that it may involve a capital repayment to compensate shareholders because the growth stories of India and Indonesia have been removed from Astro.

There is also speculati on of a new development that an agreement had been reached on its arbitration award of US$230mil (RM786.6mil) arising from its long-standing dispute with Indonesia’s Lippo group, which may re sult in Astro receiving the pay-out.

Last week, it was announced that the Lippo group had bought out Usaha Tegas’ stake in Overseas Union Enterprise Ltd for S$957mil (RM2.29bil) leading to speculation that the fallout between Ananda and Indonesia’s James Riady (who controls the Lippo group) had come to an amicable end.

Expectations are high that Astro will get its dues from the arbitration claims soo n and may return to shareholders as dividends.

Astro All Asia Posts Record Gain on Buyout Offer


From www.businessweek.com/news/2010-03-17/ast...-offer-update1-.html

March 18 (Bloomberg) -- Astro All Asia Networks Plc, Malaysia’s largest pay-television operator, surged by a record after a group led by billionaire T. Ananda Krishnan bid as much as 2.5 billion ringgit ($759 million) for full control.

The shares jumped 18 percent to 4.21 ringgit at 10:29 a.m. local time in Kuala Lumpur, set to be the best performer on the MSCI Asia Pacific Index today. Krishnan’s group offered 4.30 ringgit a share for the 27 percent stake it doesn’t already own, according to a statement yesterday.

“It’s a fair and rather attractive offer,” Norfauzi Nasron, an analyst at OSK Research Sdn., said in a report today. “It would be a good exit strategy for the remaining shareholders given that Astro’s share price has been lingering below the 4 ringgit level since the second half of 2007.”

Taking Astro private will allow Krishnan to accelerate investments in markets such as India, China and Malaysia without the need for shareholder approval. Astro owns 20 percent of India’s Sun Direct Pvt.

The bid by Krishnan, 71, Malaysia’s second-richest man, was 21 percent higher than the stock’s last-traded price of 3.56 ringgit before they were suspended March 15. The offer values Kuala Lumpur-based Astro’s 1.93 billion shares at 8.32 billion ringgit.

‘Next Growth Phase’

The buyout “creates a more conducive shareholding and operating structure to support the company’s future, high capital expenditure requirement and long gestation period,” Nazir Razak, group chief executive officer of CIMB Group, which is leading a group of banks to finance the buyout, told reporters yesterday. “The deal offers minority investors an attractive price whilst not subjecting them to the associated risks of the company’s next growth phase.”

The bid is Krishnan’s first buyout deal since 2007, when he bought out his mobile-phone company Maxis Communications in a 15.8 billion ringgit transaction. Maxis Communications sold shares of its domestic unit in November 2009 in a 11.2 billion ringgit initial public offering after Prime Minister Najib Razak encouraged it to relist to attract more investors to Malaysia.

Krishnan is Malaysia’s richest person after Robert Kuok, with wealth estimated at $7.6 billion, according to Forbes magazine. The billionaire also owns stakes in gaming and power group Tanjong Plc and Measat Global Bhd., and has interests in real estate, marine transport and oil and gas companies.

Astro to go private


From biz.thestar.com.my/news/story.asp?file=/...004&sec=business
Deal to be valued at RM8.5bil cash or RM4.30 a share

BUKIT JALIL: The major shareholders of Astro All Asia Networks plc led by tycoon Ananda Krishnan, intend to take the country’s sole pay-TV operator private in a deal valued at RM8.5bil cash or at an offer price of RM4.30 a share.

The minorities’ shares are valued at up to RM2.4bil. The major shareholders are buying over the company that was listed in October 2003 as they feel that the privatisation would pave the way for Astro to optimise its capital structure for its expansion locally and regionally.

Astro will only be delisted if the major shareholders secure more than 90% of the shares of its company from the privatisation exercise, otherwise its listing status will be maintained.

Ananda owns 42% of the listed entity, while Khazanah Nasional Bhd has a 21% stake.

“We have a very fair price on the table. I think we can achieve the 90% acceptance target,” said CIMB group chief executive Datuk Seri Nazir Razak.

CIMB Investment Bank Bhd has been appointed adviser to Astro Holdings, the vehicle for the privatisation, while RHB Investment Bank Bhd and UBS Securities Malaysia Sdn Bhd have been appointed advisers to Astro.

Should the acceptances cross the 90% threshold, the delisting process is expected to be completed in mid-June this year.

In a media conference yesterday, Nazir said the privatisation was timely given Astro’s business evolution as i t created a more conducive shareholding and operating structure to support the company’s future high capital expenditure requirements and long gestation period.

“We believe the deal offers minority investors an attractive price while not subjecting them to the associated risks of the company’s next growth phase,” he said.

Nazir added that given the complexion of Astro’s business, the stock was not properly valued by the market.

The offer price of RM4.30 represents a 21% premium over its presuspension closing price of RM3.56 on Marc h 15.

This deal mirrors Ananda’s privatisation of Maxis Communications Bhd in 2007 following a progression of investments in India and Indonesia.

“I think the deal is quite fair and generous. We are talking about current money. Some people may say that you get better value in the future, but who actually knows?” said JF Apex Securities Bhd chief operating officer Lim Teck Seng.

Another media analyst feels that the price is fair given current uncertain market conditions.

“Of course you can’t please everybody. This price has also been bandied around for a while. So I think shareholders should be happy,” said the analyst.

Meanwhile, Astro Holdings shareholders, which are Usaha Tegas Sdn Bhd and affiliates, Khaz anah and Bumiputra Foundat ions, which collectively hold 72.9% of the existing shares in Astro, have no plans to sell down their stakes in the privately held entity.

“They want to invest in the business with the vision of making it an integrated media group. There is no back-to-back deal,” said Nazir.

On whether there was a chance for Astro to be relisted, Nazir said: “There is a Maxis template. Astro will consider it in future. Period.”

Astro’s privatisation will pave the way for enhancement and expansion of product offering in Malaysia which includes high-definition (HD) service, news channels and digital media.

“The privatisation will lead to the opportunity to accelerate domestic and international growth. The capital expenditure moving forward is substantial. The estimated requirement is RM3bil to RM3.5bil. Half will be for the domestic market, while the other half is for its overseas markets,” said Nazir.

For the domestic business, this would entail capital investment for the multi-phased innovative features including HD and additional related content cost.

For the international business, this would entail additional utilisation of capital for further investment to accelerate investment in its existing business in India, China and also new initiatives such as Internet protocol TV (IPTV) in Australia, the Middle East and North Africa.

“Growth moving forward will be more exciting. It is a bet the major shareholders are taking,” said Usaha Tegas group treasurer Lim Ghee Keong.

In Malaysia, Astro offers pay-TV services, commercial radio, TV programming and other related media content.

In India, Astro through its partner SunDirect Pay-TV has investments in content initiatives.

In Hong Kong, through Celestial Pictures, it owns the world’s largest Chinese movie library.

In Australia, it has invested in an IPTV company through Fetch TV.

Astro has also entered into a joint venture with Saudi Telecom and other partners to create content for IPTV and other devices and platforms in the Middle East and North Africa.

The board has also appointed Public Investment Bank Bhd and JPMorgan Securities (M) Sdn Bhd independent financial advisers.