Malaysia tycoon to buy out telco Maxis
|
|
|
| Posted
:
Mon, 30 Apr 2007 04:08:00 GMT |
| By
:
Reuters |
| Category
:
US (Business) |
| News Alerts by
Email ( click
here ) |
|
US Business News |
Home
|
|
|
|
By Syed AzmanKUALA LUMPUR (Reuters) - Malaysian tycoon Ananda Krishnan plans to buy out the country's largest mobile operator, Maxis Communications , the firm said on Monday, in a deal that could be worth at least $5 billion.Maxis gave no reason for the buyout plan but industry analysts speculated that Krishnan, the country's second richest man after Robert Kuok, might want to relist Maxis offshore and raise foreign capital to fund international expansion.Maxis, which faces a price war and a maturing market at home, is expanding into larger and less developed Asian markets like Indonesia and India to drive growth."It is a surprise move," said Cheah King Yoong, head of investment research at Malaysia's SJ Securities. "But I would not be surprised if Maxis is listed overseas."Chong Tjen San, a telecoms analyst at Malaysia's Aseambankers, said the buyout plan could be a first step toward raising money to fund major investments in India and Indonesia."The privatisation of Maxis could allow Ananda Krishnan to more freely utilise his own wealth should the two overseas ventures require more capital than what Maxis' balance sheet could comfortably allow in the short term," Chong said.Krishnan-controlled firm Usaha Tegas Sdn Bhd, a major shareholder in Maxis, has notified the company that it and its affiliates will make an offer by Thursday, Maxis said.Krishnan held an indirect interest of 47.05 percent in Maxis as of April last year, according to company data. At the current share price, a buyout bid for the remainder of about 53 percent would cost around 17.4 billion ringgit ($5.1 billion).It would be the largest deal unveiled in Malaysia since three plantations firms signed an $8.9 billion merger in January.Usaha Tegas "has indicated that, barring unforeseen circumstances, the notice of takeover offer will be served on the company on or before 3 May 2007," Maxis said in a brief satement.Maxis owns India's Aircel and Indonesia's PT Natrindo Telepon Selular, both unlisted. It has said it plans to spend $450 million this year on its Indian operations.A local fund manager said he expected Krishnan to offer no more than 10 percent premium over Maxis' last traded price of 13 ringgit for the remaining shares."The stock is trading around its fair value, so I don't think there will be a big premium in the (offer) price," he said.Maxis stock, which was suspended from trade before the company statement, has climbed nearly 50 percent in the past 12 months, outperforming the wider market by about 7 percent.Krishnan, a former oil trader, also controls Malaysian pay-TV operator Astro All-Asia Networks Plc and gambling and leisure firm Tanjong Plc .Shares in Astro jumped on speculation that it, too, could be bought out by Krishnan, dealers said. Astro shares were up 6.3 percent at 5.10 ringgit by 0321 GMT. Tanjong also jumped in early trade but fell back to stand at 17.00 ringgit, down 1.2 percent.(Additional reporting by Mark Bendeich)
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
