Billionaire to take satellite operator private

Billionaire Ananda Krishnan has announced plans to buy out satellite operator Measat Global Bhd for US$207 million to secure full control of the company.The satellite operator said late on Wednesday that unlisted Measat Global Network Systems Sdn Bhd, which is controlled by Krishnan, plans to buy out 40.4 percent of the shares it does not own at RM4.20 a share, or RM662.6 million.Measat Global Network currently holds a 59.6 percent stake in Measat Global Bhd.The offer is 10 percent above Measat Global Bhd's last traded price of RM3.80 a share.


The satellite operator's shares rose to a six-year high to hit RM4.07 when trading resumed early today after it was halted on Wednesday ahead of the announcement.The Star newspaper, citing industry sources, said Krishnan's decision to take Measat Global Bhd private was made after "considering the huge capital that needs to be ploughed into Measat... estimated at some US$1.0 billion over the course of the next two or three years".

"Things are changing so fast. Once the company puts up the infrastructure and builds the satellite, it takes about eight to nine years to repay the debt," the source familiar with the deal told the daily.Krishnan, who is Malaysia's second-richest man, in March took pay TV operator Astro All Asia Networks plc private after its holding company made a US$758 dollar buyout offer.The tycoon is also moving to take private other listed companies in which he holds shares.

Power and gaming group Tanjong Plc said on Wednesday in a stock exchange filing that trading in the company had been suspended until tomorrow pending a corporate proposal.Krishnan also controls Malaysia's top mobile operator, Maxis, which was taken private in 2007 before making a strong return to the bourse late last year in Southeast Asia's biggest ever initial public offering, worth US$3.3 billion.

Source - AFP