KUALA LUMPUR- Malaysian billionaire Ananda Krishnan has announced plans to buy out satellite operator Measat Global Bhd. for US$207 million (S$282 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 Mr Krishnan, plans to buy out 40.4 per cent of the shares it does not own at 4.20 ringgit a share, or 662.6 million ringgit.
Measat Global Network currently holds a 59.6 per cent stake in Measat Global Bhd. The offer is 10 per cent above Measat Global Bhd.’s last traded price of 3.80 ringgit a share.
The satellite operator’s shares rose to a six-year high to hit 4.07 ringgit when trading resumed early on Thursday after it was halted 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’.
Mr 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 million buyout offer. He is also moving to take private other listed companies in which he holds shares. — AFP