KUALA LUMPUR, July 29 (Reuters) – Malaysian billionaire Ananda Krishnan is set to buyout utilities and gaming company Tanjong Plc (TJPL.KL), the second of his listed firms in three days in a deal worth 4.4 billion ringgit ($1.38 billion), two sources with direct knowledge of the deal said.
Ananda’s Usaha Tegas investment vehicle will launch a bid for Tanjong on Friday at 20.50 ringgit per share for 53 percent of the 403 million shares not held, said the two sources who declined to identified as they are not authorised to speak to the media.
That is a 14.65 percent premium to the last traded price for Tanjong, in a move that comes after another Ananda vehicle launched a 662 million ringgit cash buyout for MEASAT Global (MTCB.KL) on Wednesday. [ID:nSGE66R0GY]
Analysts say Ananda’s plan is to restructure and recapitalise the companies as private firms in order to increase their profile and expand their businesses.
Reclusive tycoon Ananda has launched a slew of corporate deals over the past 12 months, relisting a part of his Maxis (MXSC.KL) telecoms company in November in what was Southeast Asia’s biggest initial public offering. [ID:nKLR501438]
He also privatised Malaysian pay-TV monopoly Astro All Asia Networks Plc in March after a loss-making expansion in Indonesia and India weighed on the company’s finances. [ID:nSGE62G085]
Usaha Tegas and other Ananda-linked associates currently own 47 percent of the electricity to gaming company, the sources said, with one adding that the gaming operations would be sold under the proposed deal.
Investment banks Standard Chartered (STAN.L) and RBS will provide 2.1 billion ringgit in funding to help finance the deal, a source said, and the move reflects Krishnan’s belief that the companies are undervalued.
Tanjong officials were not immediately available for comment.
Tanjong shares were suspended on Tuesday and the stock last traded at 17.88 ringgit. ($1=3.193 Malaysian Ringgit) (Additonal reporting by Saeed Azhar; Writing by David Chance; Editing by Dhara Ranasinghe)