Malaysian billionaire Ananda Krishnan is considering selling satellite operator Measat, in which he owns a majority stake, according to local newspaper The Straits Times.
It is suggested that Saudi operator Arabsat may consider acquiring a strategic or…
Malaysian billionaire Ananda Krishnan is considering selling satellite operator Measat, in which he owns a majority stake, according to local newspaper The Straits Times.
It is suggested that Saudi operator Arabsat may consider acquiring a strategic or even majority stake in the Malaysian company in a transaction that could fetch approximately US$500m.
But a deal with Arabsat could prove difficult as foreign ownership in such companies is reportedly limited at 40%, wrote the newspaper.
Arabsat could not be reached for comment before the press deadline while Measat declined to comment on press speculation.
In July last year, it had already been reported that Measat was in talks with Eutelsat and AsiaSat over selling stakes in its satellites as well as partnering on future satellite projects.
Sources previously told SatelliteFinance that a number of the Asian operators have been in discussions over the past couple of years regarding joint satellite developments but not on selling a significant stake in their existing spacecraft.
Krishnan took Measat private in September 2010 after buying Telekom Malaysia’s 15.4% holding in the satellite operator for MYR252.1m (US$81m).
Krishnan’s takeover vehicle, Measat Global Network Systems (MGNS), which conducted the transaction, announced at the time that the number of Measat shares held by MGNS represented more than 96% of the total shares.
MGNS needed to own at least 90% of Measat’s shares to complete the privatisation.
CIMB Investment Bank and Maybank Investment Bank acted as advisers on the takeover process and AmInvestment Bank advised Measat.
At the time, the privatisation move was widely regarded as a spur to further investment in order for the satellite operator to gain scale internationally.
Since then, Measat has pushed ahead with its joint orbital slot development project with the Azerbaijani government and recently announced a satellite sharing agreement with Australian operator NewSat for Measat-3b.
Manufactured by Astrium and launched by Arianespace, Jabiru-2/Measat-3b will be placed at 91.5E at the end of 2013.
The potential sale of Measat comes as Krishnan recently sold some power plants in various countries worth US$3bn. Standard Chartered was reportedly hired to manage the transaction.
