Journey to Wealth
Astro Malaysia Holdings - USD250m Windfall On Its Way
THE BUZZ
Yesterday, the media reported that the High Court of Singapore accepted the appeal of Astro's group of companies which includes: (i) Astro All Asia Networks Limited (AAAN), (ii) MEASAT Broadcast Network Systems SB (MBNS), and (iii) All Asia Multimedia Networks FZ-LLC (AAMN) against PT First Media Tbk (PTFM)'s application to set aside the court orders which granted awards of USD250m to the trio.
OUR TAKE
Overview of events. To recap, the Astro Group and Lippo Group entered into a joint venture (JV) to establish a pay-TV business in Indonesia in 2005. In turn, the former invested heavily into the project. The JV between the two was terminated in 2008. As a result, the Astro Group sought compensation from Lippo for approximately USD250m. Of the three main claimants, MBNS is now parked under the newly listed company, Astro Malaysia Holdings (AMH) while the other two are not part of the listed company.
No changes to our forecast. We have yet to confirm the exact amount that is claimed under MBNS. Nonetheless, the management indicated that the legal tussle could be a long-drawn affair. Thus, we have yet to factor this potential one-off compensation into our financial model.
Maintain BUY, FV unchanged at RM3.37. That said, this announcement bodes well for AMH and we see the recent retracement of its share price as an opportunity to accumulate the stock. A key re-rating for the company would be the outcome of the bidding for the rights to air Barclays Premier League. We are reiterating our BUY recommendation on the stock with an unchanged FV of RM3.37 (WACC: 8.45%, TG: 1.5%).
Source: OSK
Yesterday, the media reported that the High Court of Singapore accepted the appeal of Astro's group of companies which includes: (i) Astro All Asia Networks Limited (AAAN), (ii) MEASAT Broadcast Network Systems SB (MBNS), and (iii) All Asia Multimedia Networks FZ-LLC (AAMN) against PT First Media Tbk (PTFM)'s application to set aside the court orders which granted awards of USD250m to the trio.
OUR TAKE
Overview of events. To recap, the Astro Group and Lippo Group entered into a joint venture (JV) to establish a pay-TV business in Indonesia in 2005. In turn, the former invested heavily into the project. The JV between the two was terminated in 2008. As a result, the Astro Group sought compensation from Lippo for approximately USD250m. Of the three main claimants, MBNS is now parked under the newly listed company, Astro Malaysia Holdings (AMH) while the other two are not part of the listed company.
No changes to our forecast. We have yet to confirm the exact amount that is claimed under MBNS. Nonetheless, the management indicated that the legal tussle could be a long-drawn affair. Thus, we have yet to factor this potential one-off compensation into our financial model.
Maintain BUY, FV unchanged at RM3.37. That said, this announcement bodes well for AMH and we see the recent retracement of its share price as an opportunity to accumulate the stock. A key re-rating for the company would be the outcome of the bidding for the rights to air Barclays Premier League. We are reiterating our BUY recommendation on the stock with an unchanged FV of RM3.37 (WACC: 8.45%, TG: 1.5%).
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 1 of 1 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
2
3
BFM Podcast
4
5
BFM Podcast
6
Koon Yew Yin's Blog
CPO price is rising rapidly as shown by chart below - Koon Yew Yin
7
Axcapital's investment blog
KAB - Executing its way to a record quarter. Could more Petronas contracts be coming?
8
Mercury Securities Research
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kuntauasli
rise.. rise...
2012-10-24 10:44