Tuesday, August 28, 2012

IPO ... Astro

The re listing of Astro Malaysia is expected to raise some rm5.47 billion from the sale of 29.2% of the company. However, only 31.2% of the proceeds raised from the sale of up to 1.52 billion new and existing shares will go to Astro Malaysia . Of the total 1.52 billion shares, slightly over a billion shares are sold by T Ananda and Khazanah Nasional Bhd while the rest are new shares.

 From the sale of the 474.3 million new shares estimated to net around rm1.7 billion, some 58% of the gross proceeds has been earmarked for capex, while 29.35% will go to repay bank borrowings. This leaves 8.6% of proceeds for general working expenses.

Nonetheless the IPO is expected to raise rm5.47 billion for the company and controlling shareholders using the indicative price of rm3.6 a piece. This values Astro Malaysia which is listing without its foreign operations in India and Indonesia , at rm18.7 billion, significantly above the rm8.3 billion the old Astro Malaysia was worth at the rm4.30 privatization price.

Astro Malaysia is widely expected to market itself as a dividend play.

Anandda will continue to control about 50% of Astro’s enlarged share base post IPO. Khazanah’s effective interest will be 20.8%.

As at April 2012, Astro had rm480 million cash. Borrowings and finance lease liabilities stood at rm3.69 billion, of which rm3.66 billion is long term liability.

It will continue to stay the market leader with continued investments of rm1 billion annually in content.

Listing without the foreign pay TV operations housed under the de listed Astro would be sheltered from the ongoing courtroom disputes Ananda and Lippo Group as asll the wider group’s run in with authorities over corruption allegations in India that has yet to be fully laid to rest.

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