Tuesday, May 01, 2007

Maxis Again

Posted on the Business Times.

  • Ananda launches mega buyout of Maxis

    Market rumours are rife that the VGO price may be in the range of RM15 to RM16 per share, which works out to about 20 per cent premium over Maxis' last traded price.

Me say?

Ah yes, the premium would make it extremely interesting for the traders and I congratulate all the traders who has the hindsight to make this short term punt on Maxis but from an investing perspective, this 20% premium price is actually extremely disgusting from an investing perspective.


I know Maxis is worth at least rm24.00.

Yes rm24.00.



If minority shareholders are going to be constantly not given a chance to be adequately compensated for the permanent withdrawal of a good investment opportunity then what's the point of being a minority shareholder?

Imagine.. a market without any minority shareholders!

And what would them foreign value investment funds think?

  • Bursa will lose a quality stock, say analysts

    "Bursa will lose in terms of valuation to the KLCI (Kuala Lumpur Composite Index). But this will not have a negative impact on trading activities as these funds will be channeled elsewhere in Malaysia," said OSK Research analyst Jeffrey Tan.

    Minority shareholders and retail investors would also lose out on the deal as they would have one less good company to invest in, analysts said.

If privatizations are allowed to be done anyhow and anyway, then why does anyone wants to be a minority shareholder anymore?

From Star Biz.

  • Proposal to take Maxis private

    “Yes, we are shocked with the takeover plan but it does make a lot of sense to take it private, given that the current major shareholders see huge value in Maxis that the market does not. Maxis’ India unit, Aircel Inc, for one is a brilliant asset and the market is not valuing it,” an analyst said.

Again Mr.Analyst what about the minority shareholders? Do give them some due respect. Imagine a market without any minority shareholders!

  • “Taking Maxis private also allows the major shareholders to restructure it without having to deal with the minority shareholders. That gives them the flexibility of doing what they need to do with the group and some private equity investors may emerge to nurture the companies within Maxis.

    “At some point, we will not be surprised if Maxis makes its way back to the Malaysian bourse but it is expected to also have a dual listing somewhere on an international bourse and its units will also be listed separately,” he added.

“Taking Maxis private also allows the major shareholders to restructure it without having to deal with the minority shareholders."

Gosh. That's so sickening. Doesn't the minority shareholder count anymore?

And if Maxis seeks a listing elsewhere, the whole Bursa Market will lose its entire integrity. The implications for the rest of the market would be extremely damaging. Which foreign fund would invest in our market if the investment grade stocks in our listing can list and de-list anyhow and anyway they like?

  • Taking companies private is becoming a trend although most companies that are taken private usually trade below their book value. The potential takeover aside, there is also talk that Ananda may even take Astro All Asia Networks plc and Tanjong plc private, something analysts have discounted.

Now consider this. If I am a minority shareholder of Tanjong or Astro and given what had happened back to Powertek a good couple of years ago, I would NOT DISCOUNT this issue. Heck, I would be extremely nervous too!

Why should I invest in a company where I run the risk of not being fully compensated for my risk of being a minority shareholder when the company can and will de-list their stocks as per their liking!


Tell you what, show me RM24.00 and I will be walking out your door!