Will Ananda take Astro private?
Published on: Wednesday, June 20, 2018
Kuala Lumpur: Astro Malaysia Holdings Bhd, a pay-television operator owned by billionaire T Ananda Krishnan, saw its share price hit an all-time low of RM1.41 on June 1 as the market reacted to news that the counter has been dropped from the component stock list of benchmark index FBM KLCI. The subsequent news that 41 of 64 Fifa World Cup 2018 matches will be aired for free by Radio Televisyen Malaysia (RTM) further dampened the performance of the stock. Astro, the country's leading content and consumer company in the TV, radio, digital and commerce space, provides services to 5.5 million households and 23 million in-dividuals. ADVERTISEMENT Over the years, it has had a near-monopoly in the residential pay-TV business. The company also owns radio stations, publishes magazines and operates digital media. There was talk of Ananda planning to take the company private after its share price fell to a record low. He is its single largest shareholder with a 40.91% stake. Bloomberg, citing sources, reported that the billionaire has been discussing funding options with advisers and is reach-ing out to some major investors to gauge their interest. ADVERTISEMENT Then, it announced the resignation of Datuk Rohana Rozhan as group CEO. Her resignation as a CEO is effective Jan 31,2019 and a sudden handshake of RM13 million has been the talk. She will remain on board as a non-executive director. In line with the group's succession plan, the board has approved the appointment of Henry Tan as Rohana's successor. Some industry players say the changing of the guard may see Astro chart new territories due to the challenging operating environment.
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The pay-TV operator released its quarterly results. Its net profit fell 10.8% to RM174.73 million in the first financial quarter ended April 30,2018 (1QFY2019), owing to higher net finance costs. Revenue was slightly lower at RM1.31 billion against RM1.33 billion the year before. The company declared its first interim single-tier dividend of 2.5 sen, payable on July 6. Ananda is the third richest man in Malaysia with a net worth of US$7.1 bit (RM28.2 billion), according to Forbes. Stay up-to-date by following Daily Express’s Telegram channel.
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He also controls telecommunicati giant Maxis Bhd and Bumi Armada.Funding is crucial for privatisation to happen A media analyst says it is unclear if a privatisation will take place this time around. "Will bankers lend money to Ananda? Astro's concession is up for renewal in 2022 — that's another 31/2 years.