Astro shares soar on news of potential buyout
KUALA LUMPUR: Astro Malaysia Holdings Bhd shares soared for the second day following reports that billionaire Tan Sri Ananda Krishnan is considering taking the pay-television operator private.
Shares of Astro jumped as much as 14.38 per cent yesterday hitting a threeweek high to RM1.83, giving the company a market value of US$2.3 billion (RM9.13 billion).
Ananda Krishnan, who is Astro’s biggest shareholder, has revived buyout plans after its stock recently dropped to a record low, said the people.
He has been speaking to potential advisers about funding options and is reaching out to some major investors to gauge their interest, according to the people.
The firm’s stock had fallen 47 per cent this year through the end of last week, making it the worst performer on the benchmark FTSE Bursa Malaysia KLCI Index, which was down 2.3 per cent over the period.
“It’s an opportunistic move from Ananda,” said Justin Tang, head of Asian research at United First Partners, a special situations investment and advisory firm. “He would need to offer at least a 25 per cent premium for people to consider his buyout offer.”
Ananda Krishnan is Malaysia’s fourthrichest person with a net worth of about US$4.9 billion, according to the Bloomberg Billionaires Index. The tycoon controlled a 40.9 per cent stake in Astro as of April 10, the company’s latest annual report showed.
Sovereign wealth fund Khazanah Nasional Bhd owns 20.7 per cent, while state-owned pension fund Employees Provident Fund holds 7.8 per cent.
Astro’s satellite-television platform offers 189 channels to its more than five million customers, reaching over 70 per cent of households, according to its website. The discussions were at an early stage, and there’s no certainty that Ananda would proceed with a take-private bid, said the people.