|
.By S Navalan
PUTRAJAYA: Amidst news of takeover plan and surging share prices for Astro, a tough stand taken by the Singapore government on pay-for-view channels yesterday is hardly good news for the Malaysian pay-for-view television operator
Plenty of complaints have been made about the high prices viewers have to pay to watch special events such as cricket, wrestling and boxing events and both the Singapore and Malaysian governments last month announced that they will review certain rules and regulations on exclusive content.
But the Singapore government has taken its first step in reviewing such contracts. Singapore’s Media Development Authority (MDA) is investigating the conduct of pay-TV operators over the issue of exclusive content here yesterday.
StarHub and SingTel are the two main pay-TV operators in Singapore.
That news may dampen some spirits in Astro as income from special events definitely helped when it announced a net profit of RM232.97 million two weeks ago for financial year ended Jan 31, 2010, after an impressive revenue of RM3.258 billion recorded in 2009.
However, despite the setback and Astro awaiting the Malaysian government's move following the Singapore’s decision, news filtered through that Astro’s majority owner, billionaire Ananda Krishnan, offered RM2.4 billion to buy out minority stakeholders and take full control.
Krishnan, Malaysia’s second-richest man, and his affiliates through a holding company collectively hold about 73 percent of the pay-TV company Astro All Asia Networks Plc.
Astro Holdings Sdn Bhd has offered to buy out the minority shareholders at RM4.62 a share, representing a 28 percent premium over Astro’s average share price over the last six months.
The news pushed Astro shares up by an impressive 18 percent this week.
Attractive offer
Astro Holdings said the takeover would accelerate the pay-TV company’s overseas expansion, especially in India and China as well as boost new initiatives in Australia, Middle East and North Africa. “Astro Holdings is offering the minority shareholders the opportunity to exit at an attractive premium while not subjecting them to the associated risks of the company’s next growth phase,” the statement said.
Maybank Investment Research said in a report that the offer price was above fair value and attractive. But it added that there may be “unhappy minority shareholders” since the offer price was only about six percent above what institutions paid in the company’s initial public offering back in 2003.
Despite its profitable Malaysian operations, Astro posted a net loss of RM529.18 million in fiscal 2009, dragged down by losses at its overseas operations in Indonesia and India.
Astro has a 20 percent stake in India’s Sun Direct TV. Its pay-TV joint venture in Indonesia ceased operations in late 2008 after a contract dispute.
Krishnan, 70, a self-made billionaire, also controls satellite operator MEASAT Global, top mobile phone company Maxis and power producer and numbers-betting operator Tanjong PLC.
In 2007, he had similarly bought out Maxis for about RM15.84 billion to accelerate its regional expansion. Maxis re-listed its domestic operations in November 2009 to raise RM11 billion in the biggest share sale ever in Southeast Asia.
However, yesterday’s news may bring some twist to the takeover deal, especially with Prime Minister Najib Tun Razak hoping the business climate in Malaysia will be friendlier to the people and his team taking note of what took place in Singapore.
"MDA is concerned about reports that operators have rushed into locking up exclusive content before the effective date of the cross-carriage measure," said Singapore’s MDA's head of competition and market access, Eileen Ang, in an interview.
"Hence, MDA is investigating the matter to determine if this is indeed the case."
Ang said MDA has exercised its statutory powers to get operators to provide MDA with relevant information for its investigation.
Hefty fees
The problem has cropped up in Malaysia and Singapore where events like wrestling, cricket and world-class boxing have come under the special sports category whereby subscribers have to pay hefty fees just to watch a three-hour show.
Special cricket competitions have also come under scrutiny in Malaysia as viewers may end up paying more than RM200 just to get a chance to watch top Test matches live. There is also an extra fee for viewers to watch the 2010 World Cup in South Africa in HD.
But both Singapre's StarHub and SingTel said they would cooperate with MDA in its investigations. In Malaysia, Astro is currently the only pay-for-view channel around although that may change soon as the government is expected to end its exclusive rights in two years.
According to media reports yesterday, Singapore’s Acting Minister of Information, Communications and the Arts, Rear-Admiral Lui Tuck Yew, had revealed in Cannes that the government was investigating the last-minute flurry of exclusive deals, which were signed before the new ruling that exclusive content must be shared was announced on March 12.
Like in Malaysia, the Singapore Government had taken care to hold only “limited closed-door consultations” to try and prevent leaks ahead of the March 12 announcement, which overhauled how pay-TV content is bought, sold and distributed in Singapore. And the Malaysian government's move on this latest development was followed by Indonesia, Brunei and Thailand.
.Email us your comments to comment@freemalaysiatoday.com ..Latest NewsMost ReadBlogs Sabah CM sacks vocal LDP/BN leader who questioned him Circus comes to town Ex-PAS leader: Zaid an 'unrepentant' soul Local Indian group to resolve Maika crisis Kedah PKR: Wei Shu is last of defectors Samy, Shafie hurt after falling on barbed wires Local Indians protest Umno's 'high-handedness' Four MIC branches dissolved in protest . Push for Sabah, S'wak's independence: Next stop UN 'Umno paid his RM1.8 mil debt': Zahrain cries slander PKR renegades met Najib, Rosmah before quitting ‘Three blind mice’ to Washington went 'One Israel-1M'sia': Anwar implicates Khairy's old friend 'Diploma holder' IGP accused of perjury Mahathir and Ibrahim – an 'ultra and a liar' Anwar: Who is Rais to question my position? . Hulu Selangor diary (Day 1): Armour, Shield, & SwordPaper tigersA Tale of Two CitiesBlair the liar 2History repeats itself: MCAEkonomi & matawang Temasek pula melonjak!Cigma-HRP consensus on the Third ForceIs this why Pornthip won't come?...EditorialCommentLettersTime to face the Israel question NEW All publicity is good says an old adage among press agents. That adage is being put severely to the test in the matter of the federal government's publicity consultants Apco Worldwide.
At last count, six institutions and seven members of the ruling establishment have become embroiled in a fast-escalating row that threw up questions of national security and Israeli influence. It is a row that has now gone up to the very top – to the Yang di-Pertuan Agong.
Read more... Will Chua's "Humble Ant" polls manifesto see light? Quit horsing around, PTC Of goodies and buy-election Hold your horses, Mr Muhyiddin The old war cannon: a tale of love and honour The politics of issues and the issue of politicising Oh, these Jews! Why is Zulkifli off the hook? . Wrong person helming tourism ministry Appoint an Indian as education minister Hulu Selangor: The public have been fooled Wise move by Samy Vellu FMT has got the finger on the pulse A cabinet chock-full of dimwits Monkey see, monkey do No 2 has forfeited his eligibility to ever become PM ...Video GalleryPhoto gallery
..
.. .......HomeAbout UsDisclaimerContact UsFeeds Reset user settingTop.Copyright © 2010 Free Malaysia Today - Free and Independent. All Rights Reserved.
Bookmark & ShareFree Malaysia TodayXSelect from these web-based feed readers: AOLBloglinesGoogle ReaderMy MSNNetvibesNewsisfreePageflakesTechnoratiYahooNo matching services..netShoutout100zakladok2linkmeA1‑WebmarksAdifniAeroAIM ShareAmazonAmen Me!AOL MailArtoAskAviary CaptureBaangBaiduBeboBit.lyBizSugarBleetboxBlinklistBlipBloggerBloggyBlogmarksBlurpaliciousBobrdobrBonzoBoxBookmarkingNetBookmarky.czBordomBox.netBrainifyBryderi.seBuddyMarksCamyooCare2CiripCiteULikeClassicalPlaceClickazooCndigColivia.deConnoteaCOSMiQDeliciousDesignBumpDesignmooDiggDiggitaDiglogDigoDiigoDipdiveDoMelhorDoowerDostiDotNetKicksDrimioDropjackDzoneEdelighteKudoselefanta.pleLert GadgetEmailEmail AppEmbarkonseuCliqueiEvernoteextraplayEzySpotFabulously40FacebookFarkFarkindaFAVableFavesfavlogFavoritesFavoritusFlakerFloss.proFnewsFolkdfooxwebforceindyaFresquiFriendFeedFriendsterfunPfwispGabbrGacetillaGamekickerGamesNGiveALinkGlobalGrindGluvSnapGmailGoogleGoogle BuzzGoogle ReaderGraveeGreaterDebaterGrono.netGrumperHaber.gen.trHacker NewsHadash HotHatenaHazarkorHedgehogsHelloTxtHEMiDEMiHipstrHitmarksHot BookmarkHotklixHotmailHOTweb.ltHTML ValidatorHyvesIdenti.caiGoogleihavegotInformazioneInstapaperInvestorLinksiSocietyiWiWJamespotJiskoJumptagsKaboodleKaevurKiRTSYKledykoornkKudosLaaikitLadenzeileLibrerioLink NinjaLink-a-GogoLinkedInLinkSharesLinkuj.czLiveLivefavorisLiveJournalLynkiMawindoMecchomeinVZMemori.ruMenéameMindbodygreenMister WongMixxMoemesto.ruMultiplymyAOLMylinkvaultMySpaceN4GNetLogNetvibesNetvouzNewsTrustNewsvineNujijOKNOtizieOneviewOrkutOsmosusOyylaPDF OnlinePhoneFavsPimpThisBlogPing.fmPlanypusPlaxoPlurkPolladiumPopEditionPosteezyPosterousPrati.baPrintPrintFriendlyPropellerPushaQuantcastRead It LaterRedditScoop.atSegnaloSekomanShavehShe Told MeSimpySlashdotSmak NewsSMISodaHeadSonicoSpeedtileSphinnSpoken To YousportpostspringpadSpruzerSquidooStartaidStartlapStoryFollowerStrandsstudiVZStuffpitStumbleUponStumpediaStylehiveSurfpeopleSvejoSymbalooTagvnTagzaTechnoratiTellMyPoliticianThisNextTip'dTransferrTranslateTulinqTumblrTusulTweetMemeTwitterTypepadViadeoVirbVisitezMonSiteVyoomWebnewsWhois LookupWindy CitizenWireFanWordPressWorioWovreWykopXangaY! BookmarksY! BuzzY! MailYammerYardbarkerYazzemYiggYoolinkYorumcuyumYoubookmarksYouMobZooLooDoneMessage sent! Share again.AddThis for Internet ExplorerMake sharing easier with AddThis for Internet Explorer.Download
Don't show theseTo: (email address)From: (email address)Note: (optional)255 character limitMore:Get the AddThis ToolbarPrivacyAddThisBookmark & ShareFree Malaysia TodayXMake sharing easier with AddThis for Internet Explorer. Don't show theseEmailFavoritesPrintDeliciousDiggGoogleMySpaceLiveFacebookStumbleUponTwitter
Added on April 17, 2010, 6:02 pm.By S Navalan
PUTRAJAYA: Amidst news of takeover plan and surging share prices for Astro, a tough stand taken by the Singapore government on pay-for-view channels yesterday is hardly good news for the Malaysian pay-for-view television operator
Plenty of complaints have been made about the high prices viewers have to pay to watch special events such as cricket, wrestling and boxing events and both the Singapore and Malaysian governments last month announced that they will review certain rules and regulations on exclusive content.
But the Singapore government has taken its first step in reviewing such contracts. Singapore’s Media Development Authority (MDA) is investigating the conduct of pay-TV operators over the issue of exclusive content here yesterday.
StarHub and SingTel are the two main pay-TV operators in Singapore.
That news may dampen some spirits in Astro as income from special events definitely helped when it announced a net profit of RM232.97 million two weeks ago for financial year ended Jan 31, 2010, after an impressive revenue of RM3.258 billion recorded in 2009.
However, despite the setback and Astro awaiting the Malaysian government's move following the Singapore’s decision, news filtered through that Astro’s majority owner, billionaire Ananda Krishnan, offered RM2.4 billion to buy out minority stakeholders and take full control.
Krishnan, Malaysia’s second-richest man, and his affiliates through a holding company collectively hold about 73 percent of the pay-TV company Astro All Asia Networks Plc.
Astro Holdings Sdn Bhd has offered to buy out the minority shareholders at RM4.62 a share, representing a 28 percent premium over Astro’s average share price over the last six months.
The news pushed Astro shares up by an impressive 18 percent this week.
Attractive offer
Astro Holdings said the takeover would accelerate the pay-TV company’s overseas expansion, especially in India and China as well as boost new initiatives in Australia, Middle East and North Africa. “Astro Holdings is offering the minority shareholders the opportunity to exit at an attractive premium while not subjecting them to the associated risks of the company’s next growth phase,” the statement said.
Maybank Investment Research said in a report that the offer price was above fair value and attractive. But it added that there may be “unhappy minority shareholders” since the offer price was only about six percent above what institutions paid in the company’s initial public offering back in 2003.
Despite its profitable Malaysian operations, Astro posted a net loss of RM529.18 million in fiscal 2009, dragged down by losses at its overseas operations in Indonesia and India.
Astro has a 20 percent stake in India’s Sun Direct TV. Its pay-TV joint venture in Indonesia ceased operations in late 2008 after a contract dispute.
Krishnan, 70, a self-made billionaire, also controls satellite operator MEASAT Global, top mobile phone company Maxis and power producer and numbers-betting operator Tanjong PLC.
In 2007, he had similarly bought out Maxis for about RM15.84 billion to accelerate its regional expansion. Maxis re-listed its domestic operations in November 2009 to raise RM11 billion in the biggest share sale ever in Southeast Asia.
However, yesterday’s news may bring some twist to the takeover deal, especially with Prime Minister Najib Tun Razak hoping the business climate in Malaysia will be friendlier to the people and his team taking note of what took place in Singapore.
"MDA is concerned about reports that operators have rushed into locking up exclusive content before the effective date of the cross-carriage measure," said Singapore’s MDA's head of competition and market access, Eileen Ang, in an interview.
"Hence, MDA is investigating the matter to determine if this is indeed the case."
Ang said MDA has exercised its statutory powers to get operators to provide MDA with relevant information for its investigation.
Hefty fees
The problem has cropped up in Malaysia and Singapore where events like wrestling, cricket and world-class boxing have come under the special sports category whereby subscribers have to pay hefty fees just to watch a three-hour show.
Special cricket competitions have also come under scrutiny in Malaysia as viewers may end up paying more than RM200 just to get a chance to watch top Test matches live. There is also an extra fee for viewers to watch the 2010 World Cup in South Africa in HD.
But both Singapre's StarHub and SingTel said they would cooperate with MDA in its investigations. In Malaysia, Astro is currently the only pay-for-view channel around although that may change soon as the government is expected to end its exclusive rights in two years.
According to media reports yesterday, Singapore’s Acting Minister of Information, Communications and the Arts, Rear-Admiral Lui Tuck Yew, had revealed in Cannes that the government was investigating the last-minute flurry of exclusive deals, which were signed before the new ruling that exclusive content must be shared was announced on March 12.
Like in Malaysia, the Singapore Government had taken care to hold only “limited closed-door consultations” to try and prevent leaks ahead of the March 12 announcement, which overhauled how pay-TV content is bought, sold and distributed in Singapore. And the Malaysian government's move on this latest development was followed by Indonesia, Brunei and Thailand.
..
.. .......HomeAbout UsDisclaimerContact UsFeeds Reset user settingTop.Copyright © 2010 Free Malaysia Today - Free and Independent. All Rights Reserved.
Bookmark & ShareFree Malaysia TodayXSelect from these web-based feed readers: AOLBloglinesGoogle ReaderMy MSNNetvibesNewsisfreePageflakesTechnoratiYahooNo matching services..netShoutout100zakladok2linkmeA1‑WebmarksAdifniAeroAIM ShareAmazonAmen Me!AOL MailArtoAskAviary CaptureBaangBaiduBeboBit.lyBizSugarBleetboxBlinklistBlipBloggerBloggyBlogmarksBlurpaliciousBobrdobrBonzoBoxBookmarkingNetBookmarky.czBordomBox.netBrainifyBryderi.seBuddyMarksCamyooCare2CiripCiteULikeClassicalPlaceClickazooCndigColivia.deConnoteaCOSMiQDeliciousDesignBumpDesignmooDiggDiggitaDiglogDigoDiigoDipdiveDoMelhorDoowerDostiDotNetKicksDrimioDropjackDzoneEdelighteKudoselefanta.pleLert GadgetEmailEmail AppEmbarkonseuCliqueiEvernoteextraplayEzySpotFabulously40FacebookFarkFarkindaFAVableFavesfavlogFavoritesFavoritusFlakerFloss.proFnewsFolkdfooxwebforceindyaFresquiFriendFeedFriendsterfunPfwispGabbrGacetillaGamekickerGamesNGiveALinkGlobalGrindGluvSnapGmailGoogleGoogle BuzzGoogle ReaderGraveeGreaterDebaterGrono.netGrumperHaber.gen.trHacker NewsHadash HotHatenaHazarkorHedgehogsHelloTxtHEMiDEMiHipstrHitmarksHot BookmarkHotklixHotmailHOTweb.ltHTML ValidatorHyvesIdenti.caiGoogleihavegotInformazioneInstapaperInvestorLinksiSocietyiWiWJamespotJiskoJumptagsKaboodleKaevurKiRTSYKledykoornkKudosLaaikitLadenzeileLibrerioLink NinjaLink-a-GogoLinkedInLinkSharesLinkuj.czLiveLivefavorisLiveJournalLynkiMawindoMecchomeinVZMemori.ruMenéameMindbodygreenMister WongMixxMoemesto.ruMultiplymyAOLMylinkvaultMySpaceN4GNetLogNetvibesNetvouzNewsTrustNewsvineNujijOKNOtizieOneviewOrkutOsmosusOyylaPDF OnlinePhoneFavsPimpThisBlogPing.fmPlanypusPlaxoPlurkPolladiumPopEditionPosteezyPosterousPrati.baPrintPrintFriendlyPropellerPushaQuantcastRead It LaterRedditScoop.atSegnaloSekomanShavehShe Told MeSimpySlashdotSmak NewsSMISodaHeadSonicoSpeedtileSphinnSpoken To YousportpostspringpadSpruzerSquidooStartaidStartlapStoryFollowerStrandsstudiVZStuffpitStumbleUponStumpediaStylehiveSurfpeopleSvejoSymbalooTagvnTagzaTechnoratiTellMyPoliticianThisNextTip'dTransferrTranslateTulinqTumblrTusulTweetMemeTwitterTypepadViadeoVirbVisitezMonSiteVyoomWebnewsWhois LookupWindy CitizenWireFanWordPressWorioWovreWykopXangaY! BookmarksY! BuzzY! MailYammerYardbarkerYazzemYiggYoolinkYorumcuyumYoubookmarksYouMobZooLooDoneMessage sent! Share again.AddThis for Internet ExplorerMake sharing easier with AddThis for Internet Explorer.Download
Don't show theseTo: (email address)From: (email address)Note: (optional)255 character limitMore:Get the AddThis ToolbarPrivacyAddThisBookmark & ShareFree Malaysia TodayXMake sharing easier with AddThis for Internet Explorer. Don't show theseEmailFavoritesPrintDeliciousDiggGoogleMySpaceLiveFacebookStumbleUponTwitter
This post has been edited by smileguy: Apr 17 2010, 06:02 PM
|