© 2010 Rapid TV News
Rose Major ©RapidTVNews | 17-03-2010
The rumours had it right: Malaysian pay-TV operator Astro All Asia Networks is going private, following a US$758 million buyout offer from its holding company, controlled by tycoon Ananda Krishnan.
Astro Holdings plans to buy the 27% of the company it does not already own. The price, at MYR4.30 (US$1.30) per share, is a 25% premium on Astro’s closing price before trading in the broadcaster’s shares was suspended on Tuesday, pending the announcement.
A statement from the company said: "As a public listed entity, substantial capital requirements needed for its growth plans may potentially strain the cash flow position and may impair Astro."
The move to a private company would, said chairman Badri Masri, give Astro funds “to accelerate investment in its existing business in India and China and also new initiatives such as IPTV in Australia, Middle East and North Africa."
But as happened with Astro’s sister mobile company Maxis in 2007, Astro could return to the stock market at a later date. Astro said such a move would be considered when Astro regained “a more stable earnings profile”.
In recent years, Astro has been hit by an investment in Indonesia that never came to full fruition, despite the company pumping millions of dollars in to a fledgling pay-TV operator there. Understandably, investors have since been nervous at Astro’s international ambitions.
© Rapid TV News 2010
