Tuesday, September 7, 2010

MEASAT extends buyout offer

The takeover offer for all outstanding shares in Measat Globalhas been extended to September 22, two weeks later than its initial deadline. 
 

Tycoon Ananda Krishnan's Measat Global Network Systems Sdn Bhd (MGNS) has extended its takeover offer for all outstanding shares in satellite operator Measat Global Bhd (3875) to September 22, two weeks later than its initial deadline.

In a filing to Bursa Malaysia yesterday, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd, on behalf of MGNS, said that all other details, terms and conditions of the offer as announced previously remained unchanged.

In a separate announcement, Telekom Malaysia Bhd (TM) said it had accepted the conditional takeover offer from MGNS to buy its entire 15.39 per cent stake in Measat.

MGNS, which currently holds 59.56 per cent of Measat, is proposing a conditional takeover offer to buy the rest of the equity interest in the latter at RM4.20 a share. The entire deal could be worth RM668 million.
Measat operates a network of four satellites with footprints over Asia and Africa, serving customers in the broadcasting and telecommunications sector.

Based on its 2009 annual report, 63 per cent of its revenue was derived from broadcasting and the rest from telecommunications. About 60 per cent of group revenue came from Malaysia.

TM, meanwhile, said the RM4.20 offer price represents a 40-sen premium, or 10.53 per cent, to Measat's last traded share price on July 27, being the last full trading day for its shares before the date of notice of the offer on July 28.

TM added that the disposal is an opportunity for it to monetise its investment.

The group said it will use the gross proceeds of RM252.1 million from the disposal for its working capital requirements.


By Sharen Kaur
Business Times

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