MSWG Also Not Happy With Astro Listing!

On Star Biz: http://biz.thestar.com.my/news/story.asp?file=/2012/9/1/business/11950273&sec=business

MSWG is echoing the same points made in the blog posting: Want To Go For Astro IPO?

• Saturday September 1, 2012
  MSWG unhappy about structure of Astro’s upcoming listing
  By JOHN LOH
  
  PETALING JAYA: The Minority Shareholder Watchdog Group (MSWG) is unhappy about a number of issues related to how the upcoming listing of Astro Malaysia Holdings Bhd is structured.
  
  “Our grouses still remain with regards to the listing and delisting exercises currently being done by many Malaysian conglomerates,” chief executive officer Rita Benoy Bushon said in the Aug 30 edition of MSWG's newsletter.
  
  She said Astro, if it was floated at RM3.60 per share, would be valued at RM18.7bil, far exceeding the RM8.3bil price at which it was privatised in 2010.
  “Here, Astro is listing without its foreign operations in India and Indonesia. We understand that Sun Direct TV business in India has about seven million subscribers as at last year despite only starting in 2008.
  “What's more, around two-thirds of the initial public offering (IPO) comprises offer-for-sale shares, which means the proceeds will go to the major owner, not the company,” she added.
  
  The pay-TV operator, which has a subscriber base of some three million users and a market penetration of 50% of Malaysian households, is offering up to 1.52 billion shares, or 29.2%, of its enlarged share capital at its IPO expected next month.
  
  Based on the indicative price of RM3.60 per share for bumiputra investors as reported by Reuters, the listing could raise up to RM5.47bil, making it the third largest in the country this year behind Felda Global Ventures Holdings Bhd and IHH Healthcare Bhd's RM9.93bil and RM6.3bil IPOs respectively.
  
  Only 474.3 million, or 31.2%, of the shares to be sold are new, giving Astro's existing shareholders the bulk of the gross proceeds at 70%.
  
  The offer-for-sale shares are to be sold by Astro founder Ananda Krishnan and Khazanah Nasional Bhd, although they will still command a 70.8% interest in the company post-IPO.
  
  Ananda, Malaysia's second-richest man, will retain a 50% stake in Astro and Khazanah 21%.
  
  Bushon explained that another sticking point about the listing is the portion allocated for retail investors, which was just the minimum 2%.
  
  “We hope the advisers and the company would consider allowing the clawback provisions from other portions, including cornerstone investors, if there is an oversubscription of the retail portion, say by more than five times.
  
  “And will the regulator step in to manage the way companies are listed and delisted in Malaysia?” she asked.
  
  A total of 1.26 billion shares, or 24.2%, of Astro would be offered to local and foreign institutional investors, including bumiputra investors, and just 260 million, or 5%, to retail investors.
  
  Of this, some 103.95 million shares, or 2% of the firm's enlarged share base, has been allocated for the general public, with half of that for retail bumiputra investors.
  
  The remaining retail shares would be offered to Astro employees, customers, directors and contractors.
  
  Astro had said in its prospectus exposure that 58% of the IPO proceeds would be used for capital expenditure and 29.3% to repay bank borrowings. The balance would be kept for working capital purposes and to defray listing expenses.

Want To Go For Astro IPO?

Posted on the EdgeMalaysia: http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=219033&Itemid=79

• Astro Malaysia to take one-third of IPO proceeds Written by Cindy Yeap of theedgemalaysia.com 
  Thursday, 23 August 2012 09:15
  
  KUALA LUMPUR: The re-listing of Astro Malaysia Holdings Bhd is expected to raise some US$1.75 billion (RM5.47 billion) from the sale of 29.2% of the company.
  
  However, only 31.2% of proceeds raised from the sale of up to 1.52 billion new and existing shares at the comeback IPO will go to Astro Malaysia, according to an updated draft prospectus dated Aug 17 on the Securities Commission’s website. Of the total 1.52 billion shares, slightly over a billion shares are sold by existing shareholders T Ananda Krishnan 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 gross proceeds has been earmarked for capital expenditure, while 29.35% will go to repay bank borrowings. This leaves 8.6% of proceeds for general working capital and 4.1% for listing expenses.
  
  Astro Malaysia, which is expected to come to market in September, did not provide an indicative pricing in the updated version to the initial draft released on Aug 8.
  
  Nonetheless, the IPO is expected to raise RM5.47 billion for the company and its controlling shareholders using the indicative price of RM3.60 apiece that a Reuters report last week said bumiputera investors had been offered.
  
  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 ALL ASIA NETWORKS PLC [] was worth at the RM4.30 privatisation price. Like the re-listing of Ananda’s Malaysian mobile arm Maxis Bhd, Astro Malaysia is widely expected to market itself as a dividend play, having promised a minimum pay-out ratio of 75%.
  
  Astro Malaysia is widely expected to market itself as a dividend play, having promised a minimum payout ratio of 75%.
  
  Ananda,who privatised the pay TV operator with Khazanah two years ago, will continue to control about 50% of Astro Malaysia’s enlarged share base post-IPO. Khazanah’s effective interest will be 20.8%, according to the updated draft document, bringing their collective interest in Astro Malaysia to 70.8%.
  
  The updated document also named former Chief Justice of Malaysia Tun Zaki Tun Azmi as Astro Malaysia’s independent non-executive chairman, with Usaha Tegas Sdn Bhd director Augustus Ralph Marshall as executive deputy chairman.
  
  Set to be Malaysia’s third largest IPO so far this year after Felda Global Ventures Holdings Bhd and IHH Healthcare Bhd, some 1.26 billion shares or 95% of Astro Malaysia’s offering are for institutions. Of this, some 597.69 million shares or 11.5% of the company’s enlarged share base will go to bumiputera investors.
  
  This leaves 259.87 million shares, or 5% of its enlarged share base, for the retail offering, including that for Astro directors, employees, contractors and customers. The pool for the general public is 103.95 million shares or 2% of Astro Malaysia’s share base, half of which are for retail bumiputera investors.
  
  As at April 30 this year, Astro Malaysia had RM479.1 million cash. Borrowings and finance lease liabilities stood at RM3.69 billion, of which RM3.66 billion is long-term liability.
  
  While its 3.1 million customers already account for over 50% of Malaysian householders, Astro Malaysia said there is still growth to be had. Astro Malaysia intends to stay the market leader with continued investments of RM1 billion annually in content. It also intends to derive new income stream from smart and targeted marketing of additional products to its existing customer base.
  
  Listing without the foreign pay TV operations housed under the de-listed Astro All Asia Networks, Astro Malaysia would be sheltered from the on-going courtroom disputes between Ananda and former Indonesian partner the Lippo Group as well as the wider group’s run-in with authorities over corruption allegations in India that has yet to be fully laid to rest.
  
  CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are joint principal advisers for the IPO.

Taken private at 8.3 Billion.
Seeks relisting at 18.7 Billion???

LMAO!!!

Are they really serious?? Can life be soooooooooooooooooooo good????

Want to go for this new listing?

And mind you, just like Maxis, Astro is seeking listing without its overseas operations!!!

Do refer this past posting on 31 March 2010: Astro Privatisation And Sun Direct TV's Immense Potential. Allow me to post the following from that posting.

====>>>>

Then the following statement from him struck me.

• "(Astro) has better value in being taken off the market with the current stage of development of high definition television (HDTV) and the Indian market,"

The Indian market.

Aha!

This reminds me of Aircel!

Flashback the posting: Regarding Aircel and Maxis. It seems that as mentioned in a Business Times article in Nov 2009, Aircel had 26 million subscriber growing at one million new subscriber per month!

That was the jewel in Maxis.

The incredible growth in Aircel.

Which got me asking, what about Astro's growth in India.

Sun Direct TV.

So I asked Google.

http://www.afaqs.com/perl/media/story.html?sid=26440

• As per its website, Sun Direct reaches approximately 5.3 million homes, whereas Tata Sky has a subscriber base of more than 4.5 million and Dish TV has about 6.5 million subscribers.

That article was dated 4th March 2010. Here's a newer one. DTH aims peak subscriber growth in FY'11 on back of sports

• Tata Sky has 16 per cent of the incremental subscriber growth while Sun Direct has 21 per cent and Big TV 12 per cent, the sources add

Sun Direct has 21% subscriber growth?????

And here is from Sun Direct own website. http://www.sundirect.in/media.php

Check this out.

7th July 2008 http://www.sundirect.in/mediaDetails.php?mediaId=2

• Sun Direct TV Pvt. Ltd one of the leading DTH service provider announces the achievement of 1 Million DTH subscribers in 200 days.The one million subscriber base comes from only 4 southern states i.e. Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and the union territory of Pondicherry.
  
  On the eve of this 1 Million subscriber achievement , Sun Direct has launched 14 add-on packages ranging from as low as Rs. 10/- to Rs. 140/- "Packages to suit every pocket" in a "Pay for what you watch" concept for the very first time in Indian DTH scenario.

1 million subscribers in 200 days! WOW!

8th April 2009. http://www.sundirect.in/mediaDetails.php?mediaId=5

• Another landmark achievement for us is crossing the 3 million mark subscriber base by March 2009, as committed earlier; this achievement qualifies us to be the No 2 service DTH provider. In the coming fiscal year we look forward to occupy the pole position. We have added more customers than any other DTH player in the last one year and in the coming days we will be adding more innovative features, services and channels in our offerings.” Added Mr. D'Silva

From July 2008 to March 2009, Sun Direct went from 1 million subscribers to 3 million subscribers!!
Sep 2009. http://www.sundirect.in/mediaDetails.php?mediaId=7

• Fastest growing DTH player to touch 4 million base in less than two years time
  Chennai, 7th September, 2009: Sun Direct Pvt Ltd, the leading direct-to-home (DTH) service provider in the country achieved another milestone by crossing the 4 million subscriber base; the fastest growing player in the DTH market to do so in under two years, since its launch in December 2007.
  
  Setting up a scorching growth pace in the market with its Value for Money offer, right regional content mix, deep distribution across the country and offering flexi-content pricing, all of which have enabled Sun Direct to become the fastest growing DTH player in the country today.

4 million subscribers now!!!!

What incredible growth!

How?

Don't you think Sun Direct is a company with incredible potential?

Then the Maxis saga, the listing, delisting and relisting came to mind.

Hmmm... very much possible, yes? What if Astro delist... goes private.. and relist only the Malaysian operations only. Just like Maxis. Dare we say not possible? The new Astro without Sun Direct! Just like Maxis without Aircel.

I know I am usually wrong, so could I be wrong here?

=====>>>>
Yessir!

Spot on!

Astro now wants to relist without Sun Dircect and they want to sell you this IPO at a more expensive price!!!!

Duh!

Life is so good, yes?

So how is Sun Direct doing today?

Last year, Sun Direct was reported to have 7 million subscribers! http://ibnlive.in.com/generalnewsfeed/news/sun-direct-surpasses-seven-million-subscriber-base/802624.html

Remember company only started in 2008. By 2011, it had 7 million subscribers. What an incredible growth rate. (And apparently by March 2012, Sun Direct now has 7.5million subscribers! http://en.wikipedia.org/wiki/Sun_Direct#cite_note-9 )

Yeah, Sun Direct USED to belong Astro All asia.

But now they want to relist Astro but without Sun Direct!!!

I wonder how those who sold their Astro All Asia shares feel now......

Now do you understand why companys are delisted and relisted again?

ps: Regarding the IPO. I have no idea how this BRAND new IPO will perform. I am just not interested to know. All I know is I want no part of such!

Would You Want To Invest In Maxis Re-Listing

Sigh! It has happened. Sigh!

On the Edge Financial Daily, Maxis to offer 2.25b shares under IPO

• KUALA LUMPUR: Maxis Communications Bhd (MCB) plans to list its Malaysian operations Maxis Bhd (Maxis), under an initial public offering (IPO) which will involve 2.25 billion shares, of which 2.075 billion will be offered to institutions and the remaining 174.79 million shares for the public and its customers.
  
  The IPO is set to be the country's biggest since 1995 and estimated by sources at US$2 billion, as investors rush to capitalise on booming stock markets, according to Reuters.
  
  Currently, MCB is the beneficial owner of 7.5 billion shares, representing 100% of the paid-up of Maxis. It is the promoter of the listing exercise and selling shareholder.
  
  MCB said in its exposure draft posted on the Securities Commission website on Sept 18 that it will hold 5.25 billion shares, representing 70% of the paid-up of Maxis after the IPO .............................

A US$2 Billion IPO!!!

From a minority investor or rather 'prospective' investor point of view.

1. MCB to hold 70% of the paid-up of Maxis after listing.
2. 2.25 billion share will be sold. 2.075 billion offered to funds and the remaining 174.79 million to minorities...

Regarding point no.2.

2.075 out of 2.25 billion for institutional funds of 92.2% will be sold to funds. The rest only for minority shareholders.

MCB will hold 5.25 billion shares after listing. Add in the the 2.25 billion shares for listing. Total shares will be 7.5 Billion! And only 174.79 million is sold to minority shareholders. That's around 2.3%!!!

Which means after listing, MCB holds 70% and the institutional funds hold 27.7%.

We the minorities will only hold 2.3%!

Rather lopsided isn't it?

Does the minority shareholders even matter?

And with such lopsided equity holding, what's there to stop another future privatisation exercise from happening again?

Will you even bother to be an investor in Maxis?

How Excited Will You Be For Maxis Re-Listing?

Sources: Maxis plans US$2bil public offering

• SINGAPORE/KUALA LUMPUR: Malaysia’s biggest mobile phone operator, Maxis Communications Bhd, plans to raise US$2bil in a public offering later this year, underscoring the revival of Asian initial public offerings (IPOs) as equity markets rebound.
  
  The offering, which could be the biggest in Malaysia since 1995, comes just two years after Maxis was taken private by its reclusive billionaire owner, tycoon Ananda Krishnan, who owns telecom assets in India and Indonesia.
  
  Two sources told Reuters that Maxis had chosen Goldman Sachs, Credit Suisse and CIMB to advise it on a listing in Kuala Lumpur. Under Bursa Malaysia rules, a company needs to sell a minimum 25% stake to list on the stock exchange.
  
  “It will create some sort of excitement because it was the darling of investors then and it had substantial foreign shareholdings too,” Abdul Jalil Rasheed, equities chief at Aberdeen Asset Management’s Malaysia unit said yesterday .
  
  The move comes after Prime Minister Datuk Seri Najib Tun Razak last month asked Maxis to relist on Bursa Malaysia to boost liquidity and draw in investors to South-East Asia’s most laggard stock market so far this year.
  
  Goldman Sachs, Credit Suisse and CIMB declined comment on the share sale plans. The sources declined to be identified because details of the deal are not public.
  
  “There is no announcement at this point. An announcement will be made at the appropriate time,” Catherine Leong, Maxis’ head of public relations, told Reuters when asked for a comment.
  
  IPOs have sprung back to life in booming markets in Asia, led by China after new share offerings ground to a halt last year due to the meltdown in markets.
  
  Some analysts said Maxis could be looking to raise money as it seeks to fund capital expenditure (capex) required by its 74%-owned Indian unit Aircel.
  
  “With such huge capex, perhaps Maxis has found itself geared to the limit and needs to turn to capital markets for funds,” ECM Libra said in a research note.
  
  Maxis said in March it was planning to invest US$5bil over the next three to five years to accelerate Aircel’s cellular coverage expansion in India.
  
  “Now is probably a good time for Maxis to be relisted. With that kind of size, the stock will provide the kind of liquidity investors were looking for,” said Aberdeen’s Rasheed.
  
  The listing would be the biggest since the US$1.1bil listing by Petronas Gas Bhd in Malaysia in 1995.
  
  Krishnan, ranked by Forbes Magazine as Malaysia’s second-richest man at US$7bil, controls 75% of Maxis. The rest is owned by state-owned Saudi Telecom Co Ltd.
  
  Krishnan also owns pay-television operator Astro All Asia Networks plc and Tanjong Plc, a power and gaming group, and satellite operator Measat Global Bhd, through his investment vehicles.
  
  Shares in Astro and Measat have risen 8% and 10% respectively since June 4 when market talk first emerged Maxis will be relisted through one of the companies. — Reuters

Here's a simple issue for investors to consider.

The stock market is a risk, yes? Whenever we invest in a share, the risk is countless. Let's see, we could screw up in our stock selection, the company that we thought was good turns out to be a lemon instead, companies could be hit by misfortunes (some misfortunes could be avoided but some - like economic downturns could not be avoided), we could be fooled by a company's accounting shenanigans, we could over pay for our investments etc etc etc. The risks are simply there. There is no such thing as a risk free investment. Having said that, one can always attempt to minimise our risk when we invest.

Having weigh out our risks, we then take the plunge to invest.

And when we do, isn't it a no brainer that we want to be fully compensated of and when we make our investment?

For example, putting an upside gain capped at 8% versus downside risk of 20% or more, wouldn't make much sense yes?

It's simply not business savy to make such an investment when our upside is capped while our downside risk remains.

Would you not agree?

So when a company has the option to list and delist as per their wimps and fancy, wouldn't this cap our potential gains?

Isn't this the main issue one has to content with Maxis re-listing?

What if Maxis decides to delist again? Not possible? Does a leopard ever loses its spots?

How then?

Would I be happy and excited with Maxis relisting?

No way. My personal flawed view is why bother!!!!

And there are bunch of other implications to consider with this re-listing.

Our market is small and the lack of foreign funds is undeniable. When Maxis relists, many of the local funds would have to readjust their portfolio. Those in telco sector would have to reconsider their selections. (Hello Axiata! Hello DiGi! ) And those that are NOT in, might be forced to re-consider Maxis. So when Maxis relist, guess the implication on other stocks. Would it be good or would it be bad? Would some fund even take the opportunity to sell into strength and wait for this 'new' listing?

How now my dearest?

Maxis Listing? Not Likely!

:D

On Business Times, the following caught my attention.

• "Even if they agree, I doubt it will be relisted anytime soon, because the valuation is lower than the market peak when it went private. I doubt it will be the shareholders' first choice," Juniper Securities head of research Pong Teng Siew told Business Times yesterday. (source: here )

Now this is a rather valid point.

Valuation now is LOWER than when Maxis went PRIVATE.

Meaning to say, if Maxis were to go public now, this means the owners will be selling the shares back to the public at a much lower price than the owners paid when they privatised Maxis.

Sell lower than they bought?

oO

Simply put... RUGI BUSINESS lah if they re-list.

LOL!

Now this puts a smile on my face.

Would You Be Happy IF Maxis Is Listed Once More?

On the Business Times.

• Market abuzz over possible Maxis relisting
  
  By Chong Pooi KoonPublished: 2009/07/23
  
  News of a potential relisting of Maxis Communications Bhd, the country's biggest mobile phone operator valued at some RM40 billion before it was taken private in 2007 by tycoon T. Ananda Krishnan, saw the market all abuzz yesterday.
  
  It has drawn mixed reaction from analysts, with some doubting that the deal would help the company since Bursa Malaysia is still way off its historical high even after the recent rally.
  
  "Why now? Ordinarily, you'd say now is not the best time (for an initial public offering (IPO))," said Khair Mirza, a senior telecommunications analyst with Maybank Investment Bank.
  
  "Still, the company's requirement to raise fund through the debt market could be cheaper if it were listed," he told Business Times.
  
  However, some analysts said the plan makes sense because being a public-listed company will allow Maxis to raise cheaper funds for expansion from the bond market.
  
  In a media briefing on his working visit to Saudi Arabia yesterday, Prime Minister Datuk Seri Najib Razak said he had suggested Maxis be relisted to help attract investors to the local stock exchange.
  
  The premier had discussed the Maxis IPO proposal with King Abdullah Abdulaziz Al Saud as Saudi Telecom Co, which owns 25 per cent of Maxis, is a government-linked company.
  
  The potential listing is expected to boost the profile of the Malaysia-Saudi partnership while enlarging the size of the local stock market. A large and global IPO like Maxis will also help profile Malaysia to international investors.
  
  Maxis, whose management was meeting to work out a response to the Prime Minister's statement, decided late last night not to issue a press statement.

Would I be jumping for joy on such news?

NO, NO, NO, NOOOOoooooooooooooooooooooo!

I find it utterly shambolic that a listed company can list and delist as per their wimps and fancy.

Does the company think that the Bursa is revolving door? A hotel Kuala Lumpur where one can check in and out anytime they like?

Yup, it will utterly make a mockery for the stock exchange if this would happen!

List, delist, list, delist....... (macam mana ni? kambing or going? )

And how about the minority shareholders, the long term investors?

How can an investor invest long term when the company has the option of listing and delisting anytime?

My say?

If they want to delist after listing, fine. Just don't let them re-list again man!

Sorry but this is my flawed opinion.

But sadly, the stock exchange, as a listed entity, from a business perspective, such a listing would only generate revenue. And more revenue means more cash. Why would Bursa say 'no' from a business perspective?

Sigh.

Such is the quality of our stock exchange.

Hence, I reckon that despite Maxis making a fool of the exchange previously by delisting, I do have a strange sick feeling that such an exercise could very well happen.

Hope and I pray very hard that I am wrong!

Maxis To Be 'Listed' Again?

Oh NO!!!!!!!!!!!!!!!!!!!!

Just saw the following news clip on the Financial Edge. OSK Research: Maxis to make comeback?

Well Maxis used to be a listed stock.

Then the owner decided to take private.

Hey, I have no problem with that really. Just give the minority shareholders a decent deal. Yes?

Now after being de-listed and seeing that one of its listed companies struggling big time, the owners are 'said' to want to pump Maxis into Astro All Asia!!!

This totally makes a mockery of Bursa listing exchange where listed companies list and delist as per their wimps and fancy!

First grade stock exchange eh?

I pray it happens..... NOT!

ps: this story is speculated by OSK Research and I would seriously go buy tons of salt first!

• OSK Research: Maxis to make comeback?
  Written by Joseph Chin
  Monday, 01 June 2009 09:12
  
  KUALA LUMPUR: OSK Investment Research said on June 1 speculation has it that a major corporate exercise at the highest level is brewing within Astro.
  
  “Although details are sketchy, we gather that a plan is being mooted to inject Maxis into Astro,” it said in a report issued on June 1.
  
  OSK Research said the major exercise comes on the sidelines of the Invest Malaysia 2009 (IM 2009) conference to be held on June 30 that will feature, amongst others, key Bursa heavyweights and the recent liberalisation in listing requirements.
  
  IM2009 will be Prime Minister’s Najib first official investment showcase to market Malaysian companies to overseas portfolio investors.
  
  The research house said it came to understand from a source that Maxis officials and representatives had been pitching for the re-listing exercise to a select group of individual investors overseas over the past two months.
  
  “While we are not able to confirm the accuracy of the news or the mechanism through which the re-listing would be executed, we believe it is not implausible given the strong paternal links of both companies via a common shareholder.
  
  “Should Maxis be merged with Astro, the combined revenue and net profit of RM11 billion and RM2.2 billion (based on FY09 for Astro and historical numbers for Maxis) would make it the largest listed telecommunications quadruple play exposure in the country,” it said.
  
  OSK Research said the mobile and pay-TV subscriber base would exceed 11 million and 2.6 million respectively, and an estimated asset base of over RM20 billion. It is expected to meet the revised liquidity threshold under the new FBM KLCI guideline, potentially attracting more investors into Malaysia.
  
  “We think a potential snag in the deal could be Khazanah, which holds a 21% stake in Astro and majority stakes in TM (41.8%) and Axiata (44.5%), which are involved in similar line of businesses, posing a conflict of interest.
  
  “Nonetheless, Khazanah’s entry cost in Astro in 2004 during the initial public offer exercise was above RM4.00/share and where we believe it could well accede to the deal should it prove to be value accretive,” it said.
  
  OSK Research said Astro’s share price has continued to languished over the past two years owing to negative news flow on its failed investment in Indonesia and is trading at a discount to the discounted cash flow of its Malaysian operation.

LOL!!!

Look at their reasoning..

• “While we are not able to confirm the accuracy of the news or the mechanism through which the re-listing would be executed, we believe it is not implausible given the strong paternal links of both companies via a common shareholder.

ROFLMAO!!!!!!!!!!!!!

And then the last passage... LMAO..

• OSK Research said Astro’s share price has continued to languished over the past two years owing to negative news flow on its failed investment in Indonesia and is trading at a discount to the discounted cash flow of its Malaysian operation.

ROFLMAO!!! Typical. Just typical! :D

Let's be more accurate.

The so-called negative news flow on its failed investment in Indonesia....

1. What was the end result of Astro's failed investment in Indonesia?

Astro lost TONS of money. Would OSK Research care to state how much money Astro All Asia had lost in Indonesia the past new years?

2. So if a company loses TONS of money.. tell me, is the NEGATIVE NEWS FLOW justified?

3. Why the need to brand the news to be negative or positive? Isn't it great to have news to report EXACTLY what is happening?

4. Now since as stated that OSK was NOT ABLE TO CONFIRM THE ACCURACY of Maxis re-listing... how else should I brand such news?

:p2

-------------

ps: Astro opening day price was 2.95. it's now up 4 sen. Let's see if such report drives the stock up or not! LOL!

ps: I have NO idea if you can LOSE money from this. LOL! So don't tell me no happy stories if you do LOSE money in this stock! :D

Tanjong's Power Listing?

My dearest Moo Moo Cow,

Saw this news article on Star Bizweek, Tanjong power listing. My initial reaction upon seeing the news headline was, "Oh my, they can't be serious, can they? What about them shareholders of the stock Powertek, which Tanjong privatised a couple of years ago? Surely, they cannot be too happy seeing such news, can they?"

Then I read the article.

Guess what?

The article was filled with the usual according to sources, is expected, it is understood!!!!

Yet again, we are seeing tons of un-known sources being quoted yet again!! And the whole basis of the article is based on expectations!

• Friday April 27, 2007
  
  Tanjong power listing
  
  By C. S. Tan
  
  PETALING JAYA: Tanjong plc is expected to spin off its power division for a listing overseas, which will enable the power and gaming group tap funds for acquisition of more power assets in other countries.
  
  As the company examines this option, sources say they expect such an exercise to unlock the value of its existing power assets, possibly before year's end.
  
  Tanjong started out as a numbers forecast operator (NFO) but later diversified successfully as an independent power producer (IPP).
  
  The power business has worked out so well that it produces larger profits than the NFO operations. The power division generated an operating profit of about RM430mil after interest costs, dwarfing the gaming division's operating profit of RM150mil in the financial year ended Jan 31, 2007.
  
  An initial public offering of the power assets could lead to a value of over RM3bil to emerge in a power company, the sources said.
  
  Visibility of earnings in the power division is clear again, now that negotiations between the Government and IPPs are believed to have been discontinued last month.
  
  The Government had hoped to re-negotiate supplementary agreements that would reduce the current burden of the bill that Tenaga Nasional Bhd has to pay to the IPPs.
  
  It was expected that a re-negotiated agreement would have been neutral to the value of the IPPs as measured by their discounted cash flows but the cash flows would be received over an extended concession period. That would have affected current dividend flows from Tanjong's three IPPs in the country.
  
  Since that may not be an issue anymore, Tanjong will be able to go to the capital markets and commit its Malaysian power assets to a certain level of dividend payout.
  
  The group owns three power plants in Malacca, two in Egypt and a 10% stake in a power generation and water desalination complex in Abu Dhabi, the United Arab Emirates.
  
  Tanjong has shown an ambition to expand its power business. It managed, for instance, to double its total net power generating capacity in the past year or so to 3,055 MW after its acquisition of power assets in Egypt and Abu Dhabi.
  
  The group has the balance sheet to expand further. It has a sizeable free cash flow of about RM500mil a year from its power and gaming businesses. That will enable it to obtain financing for any power assets that it acquires.
  
  Additionally, the group had RM1.29bil cash as at end-January, which should rapidly increase until it makes its next acquisition.
  
  The group is understood to be scouting around for acquisitions in the growth economies of Asia rather than the mature markets in the United States and Europe. Thus, it is searching for power assets in the Middle East, North Africa, Indian sub-continent and South-East Asia.
  
  Such acquisitions need to go through a tendering process and it has experienced a few failures in the past two to three years.
  
  Nonetheless, it took that as a step up the learning curve and the acquisitions of two sizeable power plants in Egypt last year vindicated its claims that it can succeed.
  
  Sources say Tanjong has the capacity and capability to acquire additional power plants every few years.

How?

Would Tanjong deny such a story?