Malaysian satellite pay-TV company Astro All Asia Networks is seeking to sell pre-IPO shares worth up to US$690m to local indigenous investors, known as ‘bumiputera’, claimed Reuters citing a source close to the deal.
Overall, the company is…
Malaysian satellite pay-TV company Astro All Asia Networks is seeking to sell pre-IPO shares worth up to US$690m to local indigenous investors, known as ‘bumiputera’, claimed Reuters citing a source close to the deal.
Overall, the company is reportedly expecting to raise US$1.5bn via the listing, scheduled to take place sometime in September. It would mark the third largest IPO in Malaysia this year.
Since last week, bumiputeras, who are indigenous Malays favoured under controversial governmental policies, have been offered approximately 600 million shares at MR3.60 (US$1.15) each. The offer closes on 15 August.
Cornerstone investors have also already been approached and will be offered a similar price, another source reportedly said.
The company could not be reached for comment before the press deadline.
Last week, the DTH platform, which is controlled by Malaysian billionaire Ananda Krishnan, released prospectus documents for the listing without disclosing the expected value and the timeframe.
But it revealed how it would use the proceeds, most of which will go towards capital expenditure. A third of the money will also repay bank borrowings while the remainder will be used as working capital.
CIMB has been hired as listing manager, while the joint principal advisers are Maybank, RHB and CIMB.
Astro was delisted in 2010 after Krishnan made a US$758m offer to purchase the 27.1% he did not already own, valuing the company at US$2.5bn.
The strategy behind the privatisation was to speed up investments in Asia without the need for shareholder approval.
But at the time, Astro had already stated that a relisting would “certainly be considered when [the company] achieves a more stable earnings profile.”
Meanwhile, Krishnan has also been rumoured to be considering a sale of Measat, in which he owns a majority stake. The satellite operator is valued at approximately US$500m.
