Maxis shares jump 18% to record on takeover offer

Maxis shares jump 18% to record on takeover offer
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First Published: Fri, May 04 2007. 03 02 PM IST
Updated: Fri, May 04 2007. 03 02 PM IST
By Stephanie Phang, Bloomberg
Kuala Lumpur: Shares of Maxis Communications Bhd., Malaysia’s biggest mobile-phone operator, jumped to a record after billionaire T. Ananda Krishnan offered $4.6 billion (Rs18,824 crore) to buy full control of the company yesterday.
Maxis rose 2.20 ringgit, or 17%, to 15.20 ringgit as at 9:47 a.m. local time in Kuala Lumpur, after rising as much as 18% to a record 15.40 ringgit. Krishnan, 69, and his partners offered 15.60 ringgit a share for the 40% of Maxis they don’t own.
The acquisition will help Krishnan accelerate the company’s expansion into markets including India and Indonesia. Maxis and rival Telekom Malaysia Bhd. have been forced to slash prices to compete in Malaysia, where 70% of the country’s 27 million people already own mobile phones.
Citigroup raised its target price for the company to match the offer of 15.60 ringgit a share.
Krishnan’s offer is 20% higher than the stock’s closing price before it was suspended on 27 April, CIMB Investment Bank Bhd. said yesterday. The purchase values Kuala Lumpur-based Maxis at 39.5 billion ringgit.
“The offer price came in above our and market expectations,” Jeffrey Tan, an analyst at OSK Research Sdn. in Kuala Lumpur, said in a note today.
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First Published: Fri, May 04 2007. 03 02 PM IST
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