How Much For Maxis?

My Dearest Moo Moo Cow,

So Usaha Tegas wants to make a VGO on Maxis.

Let's see how much money Maxis generated this whole year.

Open their last report quarterly earnings, Quarterly rpt on consolidated results for the financial period ended 31/12/2006

If you add back the depreciation of 1.014 billion, Maxis operations generated 3.352 billion ringgit!!

My dearest Moo Moo Cow, consider that you have cash and you want an investment that can generate 3.352 Billion ringgit, how much do you reckon that you have to invest in a business that generates say 6%.

Is 6% a good return?

It's simple math. How much would you need to invest at 6% to generate a return of 3.352 billion? Answer? 3.352 divided by 6% = 55.4 billion!!

If someone offered you less, would you accept?

Recently there was an article on Star Bix, New chapter at Maxis.

This line is most interesting.

• To grow in India, Indonesia and locally in broadband and 3G, the funding requirements are huge, but that is not really an issue, said Jamaludin. This year alone, the company needs RM2.77bil (of which RM1.57bil is for India and RM1.2bil for Malaysia) and in India alone..

And this is confirmed if you look at the cash flow.

If you are a current shareholder of Maxis, your share of this 2.725 Billion has already being invested in India and Indonesia by Maxis.

How?

Should there be a value placed on these investments?

So how much does Usaha Tegas wants to offer you?

rgds