Wednesday, 16 November 2016

Ananda Krishnan playing the listing-delisting-relisting game again?

Article from The Star: "Billionaire Ananda Krishnan exploring taking Astro private".

Some snippets:

According to industry sources, Ananda, who owns 40% of the pay-TV operator, is looking at a corporate exercise to take out the rest of the shareholders in the company via his private vehicle Usaha Tegas Sdn Bhd.

“The exercise is still in preliminary stages and details have yet to be finalised. Usaha Tegas feels that the market is not valuing the company fairly,” said a source.

Listed at RM3 a share in October 2012, Astro’s share price has hovered below that level.

The above is what I call the "listing-delisting-relisting" game, a popular pass time for Malaysian tycoons with Bursa listed companies.

I don't like that "game", since minority investors have no realistic chance to defend themselves, being "threatened" with holding shares in an unlisted company. Unfortunately, nothing much has changed, Bursa does not see this as a problem.

Another snippet:

Based on previous takeover exercises, Ananda is known not to stinge on taking his companies private, and is likely to offer a fair price to shareholders for the takeover.

"Not to stinge"? I don't agree with that statement at all, for more background on the Bumi Armada delisting and relisting, please read the following blogpost: 2 Billion: "a little money"


  1. Hi M.A. Wind,

    You may want to take a look at L&G latest corporate exercise which is another form of screwing shareholders. I cant make up my mind whether it is fair play or foul play but it certainly did not leave a good taste among the loyal shareholders.

  2. Do you have any specific information? It is a difficult deal, and the independent adviser still has to give his opinion about the deal

  3. I hope the Astro employees make out okay in the end. Apparently a lot of them bought shares in the IPO on margin (and were hurt in the initial share price decline). Even after factoring in dividends, Astro shares have returned just 0.7% p.a. since listing in Oct-12 vs. 2.6% of the unimpressive KLCI

  4. Yeah, never heard of that anymore, if they have to pay an interest rate then I guess they are all under water.

  5. This web may consider an annual top 30 award to the CEO of company that has good integrity and corporate governance being nominated/votes cast by PUBLIC with justification attach....then all the bad hats will drop off from the list and minority shareholders will be fore warn not to invest in these sucker company/people that are not in the list..
    eg ..When mention in town the CEO with moustache ,many people smile and stay away from the many company that he control..the shares been making downtrend for many years as punishment