Measat Broadcast Network Systems, a subsidiary of Malaysian pay-TV operator Astro All Asia Networks (AAAN), has been sued by television support equipment provider AV Asia for alleged breach of a mutual non-disclosure agreement over a satellite dish…
Measat Broadcast Network Systems, a subsidiary of Malaysian pay-TV operator Astro All Asia Networks (AAAN), has been sued by television support equipment provider AV Asia for alleged breach of a mutual non-disclosure agreement over a satellite dish technology, according to local reports.
AV Asia is seeking MR 1.3bn (US$420m) in loss of potential profits. It named Tele System Electronics as the second defendant in the suit filed a few weeks ago in the Kuala Lumpur High Court.
AV Asia reportedly claims that Measat used confidential information about rain fade mitigation technology to launch its Astro B.yond high definition service at the end of 2009. Rain fade refers to the interruption of satellite or radio signals by rain or snow.
Measat holds an exclusive licence until 2017 for satellite DTH transmission in Malaysia.
Parent company Astro was delisted last June by Malaysian billionaire owner Ananda Krishnan from the Bursa following his buyout of the firm for US$758m.
Once delisted, the company underwent a major overhaul, which is still going on in order to “re-energise the company’s growth, both locally and internationally,” a spokesman for AAAN confirmed at the time.
It was widely speculated that, following the privatisation, Krishnan would seek to merge AAAN with another one of his holdings, Maxis Communications, which was delisted in 2007.
However, this appeared to be conjecture. The Maxis rumour saw Measat’s shares suspended in June last year, as its share price jumped 53% in one day as traders tried to cash in on what they thought they knew.
Krishnan also recently took private another of his companies, the satellite operator Measat. This privatisation is expected to allow Krishnan to spend about US$1bn by 2013 to enable the satellite operator to gain scale.
