Friday, September 18, 2009

Maxis prospectus is out... well the draft prospectus at least.


The much awaited Maxis prospectus is out, the draft, at least.

As expected, Maxis Communications will only list its Malaysian unit on the local stock exchange. It will leave out its Indian and Indonesian investments.
The IPO involve the offer of 2.25 billion Maxis Bhd shares, representing 30 per cent of its existing share capital.

As the listing of Maxis Bhd, a subsidiary of Maxis Communications Bhd (MCB), will not involve issuing of new shares, the exercise is not expected to raise any proceeds for the company. What this means is, MCB will be selling their 30 per cent stake in Maxis Bhd and they can use the money raised from the IPO for their Indian investments.

Im thrilled when the announcement came. Not because i can buy Maxis shares. But it's because the public can now get hold of their financial performance, and operational performance. (above)

Thursday, September 17, 2009

Vimplecom expands to SE Asia.

MOSCOW, Sept 16 (Reuters) - Vimpelcom, Russia’s No.2 mobile phone operator, said on Wednesday it had agreed to buy Luxembourg-based telecom operator Millicom’s assets in Laos in a further move to expand in South-Eastern Asia.

Vimpelcom, which already operates in neighbouring Vietnam and Cambodia, said in a statement it would buy a 78 percent stake in Millicom Lao from Millicom Holding B.V. and Cameroon Holdings B.V. for about $66 million.

"Vimpelcom’s entry into Laos is the next logical step in our international expansion strategy. Laos provides a great complement to our existing operations in Vietnam and Cambodia and fits perfectly into our strategy of building a solid Southeast Asian cluster," Chief Executive Boris Nemsic said.

"The growth potential in Laos is attractive, with a population of 6.5 million people and low mobile penetration estimated at around 23 percent." The company said that completion of the acquisition was subject to regulatory approval which was expected before the end of 2009.

The remaining 22 percent stake is owned by the government of Laos. Millicom said in a separate statement the deal valued the entire Laos operation at an enterprise value of about $102 million, which represents 7.5x estimated 2009 EBITDA.

Vimpelcom’s New-York listed stock was trading up 0.75 percent at $17.50 by 1538 GMT.

Tuesday, September 15, 2009

MPHB to buy U Mobile?

It is one of the announcements that puzzles me.

Why is MPHB (Multi-Purpose Holdings Bhd), which has stakes in Magnum4D, wants to buy U Mobile or venture into a mobile industry?

The company announced yesterday that, it has signed a put option deal with AmBank, to buy 41 per cent stake in U Mobile for RM280 million.

KT Freetel and NTT DoCoMo, last year, jointly bought 33 per cent stake in U Mobile for US$200 million (US$100 million each), they have expressed their interests to exit U Mobile recently.

In a Reuters report, it said, NTT DoCoMo is selling their entire 16.5 per cent stake to U Television for US$100 million.

A few things that don't add up, or was not revealed:

1. Who owns the 41 per cent stake MPHB is buying? or Who are the owners of the 41 per cent stake?

2. When NTT and KT Freetel is selling the 16.5 per cent stakes for US$100 million each, how in the world MPHB is able to buy 41 per cent stake (about 8 per cent more than what the two foreign companies owned) at a huge discount?

3. If MPHB is so keen to buy a stake in U Mobile, why not buy it directly and instead, entered into a put option agreement with AmBank?

Initially, i have much more questions in my mind... but i guess i was too hungry, so no more energy to think...

It's 10 plus now, better go hunting food.

NEC, Casio and Hitachi to merge cellphone biz

TOKYO, Sept 14 (Reuters) - Japan’s NEC Corp, Casio Computer Co and Hitachi Ltd said they planned to merge their struggling cellphone operations to cut development and manufacturing costs.

A union would create Japan’s second-largest cellphone maker with sales of 505 billion yen ($5.6 billion) and could trigger more consolidation in a sector worn down from infighting in a crowded and dwindling market.

NEC, Japan’s No.3 handset maker, said it will split off its mobile phone division and merge it with a cellphone joint venture operated by Hitachi and Casio. How much the merger will save NEC has not been calculated yet, an NEC spokeswoman said.

NEC would hold 70.7 percent in the new venture, which will receive a 5 billion yen capital injection by June 2010. Casio will hold 20 percent and Hitachi 9.3 percent, the three companies said in a statement.

Japan’s mobile phone market is shrinking but phone makers are still shouldering hefty development costs, which can cost as much as 10 billion yen ($111 million) per new handset in the world’s most technologically competitive mobile market. NEC, Casio and Hitachi together controlled about 20 percent of Japan’s mobile phone unit sales in the year ended in March, according to research firm BCN Inc.

That would nudge out No.2 Panasonic Corp and come a close second to Sharp Corp, with 22 percent.

NEC supplies handsets to phone companies NTT DoCoMo Inc and Softbank Corp, while Casio Hitachi Mobile Communications supplies KDDI Corp, U.S. firm Verizon and South Korea’s LG Telecom Co.

The three makers are to hold a briefing at 0800 GMT.

Prior to the announcement, shares in NEC closed down 2.9 percent, in line with Tokyo’s electrical machinery index. Casio fell 4.5 percent and Hitachi 4.4 percent.

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Really hope the merger goes through, and they could synergise and give rivals Nokia, Samsung, LG a run for their money.

I guess for a start, they really need to look beyond the Japan market, and start developing phones the most parts of the world. So, in that sense, the merger will help them save costs and achieve the economies of scale.

 

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