Friday, May 4, 2007

Anand Krishnan Wants More Than It Is

This past few days featured the news that Malaysia billionaire T. Ananda Krishnan intends to privatize Maxis Communications Bhd, one of the main mobile operators by buying off the remaining 41 percent owned by minority shareholders at the price of $15.60 per share. With the offer made by Krishnan, minority shareholders stand to make 20 percent of additional profits from the present price of $13 per share when the share was suspended in the stock exchange on Monday.

If this move is successful, it will be the largest buyout of a company in Asia Pacific with the buyout amount valuing at $40 billion. What will happen to Maxis and the plans next will only be known later on. Currently, Krishnan, through his company Usaha Tegas Sdn. Bhd owns 59 percent of Maxis under the sub-company Binariang.

On the other hand, Astro, the cable-tv operator also owned largely by Anand Krishnan is increasing its present subscription fees by another 5-15 percent with effective from June 1 2007. But according to CEO, Rohana Rohzan, the increase was largely due to the increasing programming costs. However, the new cost will include the nine new channels introduced and the new price revisions covering the nine new channels would only be on effective September 1.

See the thing coming?

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