TM could scupper general offer for Measat

Telco says it is waiting for independent adviser’s recommendation

PETALING JAYA: Will Telekom Malaysia Bhd (TM) – the second largest shareholder in Measat Global Bhd (Measat Global) – take up Measat Global Network Systems Sdn Bhd’s general offer (GO)?

That is a question being bandied around but TM won’t say whether it would take up the GO or ditch it at this juncture. TM is waiting for its independent adviser’s recommendation.

“TM’s stake could be the make or break deal as they have a 15.39% stake in Measat and the offer is conditional upon 90% acceptance,” said an analyst.

The biggest shareholder in Measat is billionaire T. Ananda Krishnan, who has offered to buy out the company in a cash deal that values the satellite operator at about RM1.6bil.

Ananda, who has a 59.56% stake in Measat, has offered to acquire all the remaining shares in the company for RM4.20 per share.

The offer is, however, conditional upon acceptance from 90% of the nominal value of the shares (excluding those already held by Measat Global Network Systems) and relevant approvals.

TM bought the 15.39% stake in the satellite service provider in December 2003 for RM4.165 a share and for 60 million shares it paid about RM250mil.

TM executive director and group chief financial officer Datuk Bazlan Osman, when contacted by StarBiz yesterday, said: “We will wait for the independent adviser’s report on the GO before making a decision.” He declined to elaborate further.

An analyst said: “TM can frustrate the deal by not subscribing for the GO but the promoters would have approached TM before the deal was announced to get their buy-in due to the 90% acceptance condition.”
If TM decides to give up its stake in Measat, it would receive about RM252mil, which is close to its entry cost.

“If you add up the opportunity and holding costs, then it is a negative for TM. This could be their way of getting out of Measat, which has not given dividends thus far, nor does TM have control in the company.

“But if TM decides to retain its stake, what will the upside be and how long more will it have to wait to see gains?

“TM does not have much of a choice; they should not have bought into Measat in the first place,” said the analyst.



By B.K. SIDHU
bksidhu@thestar.com.my