Malaysian magnate offers to buy power firm Tanjong for $1.5 billion
02 August 2010
In a landmark deal a Malaysian consortium lead by billionaire Ananda Krishnan's investment arm Usaha Tegas Sdn Bhd has submitted a buyout offer for acquiring all of the shares of power and gaming firm Tanjong Plc for 4.7 billion Malaysian ringgit (approximately $1.5 billion).
Currently, the consortium's special purpose vehicle Tanjong Capital Sdn Bhd (TCSB) owns 47-per cent stake in Tanjong Plc.
The group has offered a price of 21.80 ringgit per share of Tanjong for the remaining 53-per cent stake to take the company private, valuing its total business at 8.8 billion ringgit.
The offer price represents a premium of 22 per cent over the closing price of 17.88 ringgit per Tanjong share on Wednesday on Bursa Malaysia, the Malaysian stock exchange.
"A privatized Tanjong will enable the business to seek out long-term capital providers and where it serves the corporate objective allow the introduction of strategic partners or undertaking of broader partnerships," the company said.
The deal is close on the heals of Wednesday's $210-million bid for the buyout of satellite operator Measat Global Bhd by Malaysia's second-richest man who has been aiming to expand his business empire and increase the value of his companies.