Measat gets RM4.20 a share buyout offer

Shareholders stand to get RM4.20 for each share held, which is a 10.5 per cent premium over the stock's last traded price of RM3.80.

If successful, it will be the second company controlled by Ananda to be taken private this year, after pay-television operator Astro All Asia Networks plc.

The offer was made late yesterday by Measat Global Network Systems Sdn Bhd, which owns a 59.6 per cent stake in MGB (3875). (Measat Global is controlled by Ananda.)

Measat Global said it did not plan to maintain MGB's listed status on the stock exchange.
MGB's second largest shareholder, Telekom Malaysia Bhd, which held a 15.4 per cent stake as at April 26 this year, stands to reap a tidy RM252 million if it accepts the offer.

MGB and power-and-gaming firm Tanjong plc, also owned by the reclusive businessman, each requested a trading halt of their shares yesterday pending the announcement of "a corporate proposal".

While MGB sought a one-day suspension, Tanjong requested a suspension till end-Friday.

Analysts said they would be surprised if a privatisation was also being considered for Tanjong as such an exercise had never been anticipated for the company.

"They are more likely to announce a spin-off of their power businesses, which include Powertek, to make it a pure power play firm," said an analyst who tracks the company at a local brokerage.

Sources said Tanjong was looking to expand its power business and options being considered for the company include raising debt, bringing in a partner or making an acquisition.

They also suggested that Tanjong might have sought a longer share suspension to prevent awkward market movements as a result of MGB's announcement.

CIMB Investment Bank and Maybank Investment Bank are advising Measat Global on the privatisation deal. MGB appointed AmInvestment Bank as its independent adviser.

Sources said that being a private firm was better for MGB as it sought to expand its satellite fleet more aggressively. The company would need to invest substantially and shareholders might not want to be subjected to the potential risks of this growth phase.

"It's got to be restructured and recapitalised in order for it to achieve its objective of becoming a Malaysian-owned global satellite provider," one of the sources said.

MGB's board, which met yesterday evening, said it did not intend to look for any other takeover offer.

Talk of a potential privatisation for Measat has long been swirling in the market. It gained momentum particularly after Astro went the same route earlier in March.

Ananda in mid-2007 also took mobile phone operator Maxis Communications Bhd private. The company was relisted last year as Maxis Bhd, an entity that comprises just the domestic operations.