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Measat Global Bhd, controlled by billionaire T. Ananda Krishnan, has held talks with Eutelsat Communications SA and Asia Satellite Telecommunications Ltd on selling stakes in satellites, according to three people familiar with the discussions.

The negotiations may also lead to a partnership between Measat and one of the companies, two of the people said, declining to be identified because the discussions are private. An agreement would give the companies’ access to Measat’s four satellites and help share costs of future launches.

A sale would help Ananda Krishnan, Malaysia’s second richest man, raise funds after buying out three companies last year for RM7.9bil. The billionaire, whose wealth was estimated to be US$9.5bil last year by Forbes magazine, also owns a majority stake in Maxis Bhd.

A sale would help Ananda Krishnan raise funds after buying out three companies last year for RM7.9bil.

Demand from broadcasters and phone carriers in emerging markets including China, India and Indonesia is rising, driving up average bandwidth prices by more than 5% annually in Asia, C.W. Cheung, Asia-Pacific director at telecommunications consultants Ovum, said in an interview in Hong Kong.

Measat may also be interested in sharing assets, splitting the costs of new launches, and exchanging satellite stakes, two of the people said. Chief executive officer Paul Brown-Kenyon wasn’t immediately available for comment when contacted by telephone and e-mail.

The company, which beams signals to Asia, the Middle East, Europe and Australia, said on June 7 it was ordering a new satellite costing about RM1bil ringgit scheduled for launch by the end of 2013. Ananda Krishnan, 73, delisted Measat along with power and gaming company Tanjong Plc and Astro All Asia Networks Plc last year.

Paris-based Eutelsat is the world’s third-largest fixed satellite operator, with a fleet of 27 satellites covering much of the world, according to its website. Hong Kong-based Asia Satellite, or AsiaSat, has three in-orbit satellites covering the Asia-Pacific, according to its website.

This month, Ananda Krishnan raised US$888mil from the initial public offering of Bumi Armada Bhd, the country’s biggest supplier of support vessels for the oil and gas industry. He is in talks to sell his gaming company Pan Malaysian Pools Sdn for more than RM2bil, Maybank Investment Bank Bhd analyst Yin Shao Yang said in a report in March.

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Tycoon Ananda Krishnan’s Bumi Armada is raising as much as US$906 million through an IPO next month, according to a term sheet, in what will be Southeast Asia’s second largest stock offering after Hutchinson Port’s Singapore listing.

The oil and gas service provider’s IPO will list on the Kuala Lumpur stock exchange despite volatility in financial markets that has canned a number of deals in Singapore and Hong Kong.

The IPO has attracted seven cornerstone investors, including Malaysia’s state investment fund Permodalan Nasional and Prudential Fund Management, which have pledged to invest about US$309 million into the deal.

The term sheet seen by Reuters on Monday showed Bumi Armada set a price range for RM2.80 to RM3.15 per share, raising as much as US$906 million — lower than initial expectations of a US$1 billion fundraising.

This reflects some investor skittishness over increased financial volatility due to the Greek debt crisis and inflationary pressures.

Bumi Armada officials could not be reached for comment.

A record US$58 billion worth of IPOs in Asia have been pulled in the first six months by 36 companies, a record and 39 per cent more than a year ago, Thomson Reuters data shows.

“Bumi Armada coming into play will be good for the Malaysian stock market, because we lack these type of headline grabbing IPOs,” said Abdul Jalil Rasheed, a Kuala Lumpur-based fund manager at Aberdeen Asset Management.

“Then again, this is a re-listing and we have to wait and see whether this is a company that can bring in the returns because oil and gas sector is very cyclical,” he said.

Bumi Armada will be the largest offer in Malaysia since the listing of Petronas Chemicals last year.

Bumi Armada is an offshore oil support specialist, and is the only Malaysian company that owns floating production storage and offloading (FPSO) vessels, which carry a premium lease rate.

Bumi Armada was privatised in 2003 by tycoon T. Ananda Krishnan, and a planned relisting in 2008 was delayed due to the global financial crisis. A subsequent relisting plan was also shelved.

The re-listing comes as Malaysia seeks to draw in investment from oil and gas majors like Exxon Mobil and Royal Dutch Shell, to develop new oil and gas assets in country and reverse sluggish output.

The joint global coordinators for the IPO are CIMB , Maybank and Credit Suisse, which are also joint bookrunners with RHB , CLSA and UBS , according to the term sheet.

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Company headed for Main Market, IPO involves public issue of 644 million new shares

PETALING JAYA: Tycoon T Ananda Krishnan (pic) has finally taken steps to list his shipping company Bumi Armada Bhd, which will possibly raise about US$1bil from its initial public offering (IPO), according to some reports.

The latest development came after it was first rumoured three years ago that Bumi Armada would be listed.

Details have emerged that the company would be listed on Bursa Malaysia’s Main Market.

According to its draft prospectus, the listing exercise includes offering a public issue of 644.3 million new ordinary shares and offer for sales of up to 234.3 million ordinary shares of 20 sen each. The draft prospectus on the Securities Commission’s website showed that CIMB Investment Bank, Maybank Investment Bank and RHB Investment Bank are the company’s joint principal advisers for the IPO.

The listing of the company has come after Ananda privatised three companies last year, namely Measat Global Bhd, Tanjung plc and Astro All Asia Networks plc.

Bumi Armada is a Malaysia-based international offshore services provider to the oil and gas (O&G) industry in Malaysia and over 10 other countries in Asia, Africa and Latin America.

The company provides its services through owning and operating O&G marine assets across the sector’s value chain from exploration through field development and construction, production and operations and eventually, decommissioning.

For the year ended Dec 31, 2010, it achieved profit after tax of RM351mil and earnings before interest, taxes, depreciation and amortisation of RM714mil. Revenue was recorded at RM1.24bil. About 84.8% of its revenue for the year ended Dec 31, 2010 was derived from outside of Malaysia. Its audited consolidated net assets as at Dec 31, 2010 was RM874.5mil or RM13.89 per ordinary share of RM1 each.

Since as far back as 2005, the market had heard sporadic rumours that Ananda would float the profitable Bumi Armada. He had taken it private in 2003. The listing of Bumi Armada could also be driven by the company’s own capital expenditure needs.

Bumi Armada’s attraction to investors is its forte in operating FPSOs or floating, production, storage and offloading vessels, which are mainly used to extract oil and gas from deepwater and smaller, harder-to-reach fields. High crude oil prices have spurred these types of exploration and production activities all around the world. Analysts have noted that Bumi Armada is expanding quite well into markets in Africa, India, Mexico and South-East Asia.

Related Posts:

• Another Ananda’s listing – Bumi Armada IPO
• Bumi Armada make big Entry
• Ananda selling part of Measat
• Tanjung planning to sell its gaming arm
• Tanjung record high price