Ananda set to buy out Tanjong for RM4.4b

Ananda's Usaha Tegas investment vehicle will launch a bid for Tanjong today at RM20.50 per share for 53 per cent of the 403 million shares not held, said the two sources who declined to identified as they are not authorised to speak to the media.

That is a 14.65 per cent premium to the last traded price for Tanjong, in a move that comes after another Ananda vehicle launched a RM662 million cash buyout for Measat Global on Wednesday.

Analysts say Ananda's plan is to restructure and recapitalise the companies as private firms in order to increase their profile and expand their businesses.

Reclusive tycoon Ananda has launched a slew of corporate deals over the past 12 months, relisting a part of his Maxis telecommunications company in November in what was Southeast Asia's biggest initial public offering. He also privatised Malaysian pay-TV monopoly Astro All Asia Networks plc in March after a loss-making expansion in Indonesia and India weighed on the company's finances.
Usaha Tegas and other Ananda-linked associates currently own 47 per cent of the electricity to gaming company, the sources said, with one adding that the gaming operations would be sold under the proposed deal.

Investment banks Standard Chartered and RBS will provide RM2.1 billion in funding to help finance the deal, a source said, and the move reflects Ananda's belief that the firms are undervalued.

Tanjong officials were not available for comment.

Tanjong shares were suspended on Tuesday and the stock last traded at RM17.88. - Reuters