My analysis into Astro's venture in Indonesia yield a favourable results:
From:http://
www.bernama.com/
bernama/v3/
news_lite.php?
id=196545
From:http://
www.theedgedaily.com
/cms/content.jsp?
id=com.tms.cms.artic
le.Article_97042606-
cb73c03a-90fa0500-
bc622d32"Astro, the dominant satellite tv operator in Malaysia, is hoping to finalise arrangements with the Jakarta-based
Lippo Group to jointly operate an Indonesian satellite pay tv service undertaken by Lippo's unit, PT Direct Vision, in a preliminary deal that was concluded in March this year."
From:http://
www.washingtonpost.c
om/wp-srv/politics/
special/campfin/p
layers/lippo.htm"The
Lippo Group is a giant conglomerate based in Jakarta, Indonesia, with interests in banking, finance and other enterprises. Its flagship, Lippo Ltd., listed $3.6 billion in assets in 1995. The firm owns only one small bank in the United States but has extensive interests in Indonesia, Hong Kong and China. It was founded by Mochtar Riady, an ethnic Chinese born in Indonesia."
From:http://
www.theedgedaily.com
/cms/content.jsp?
id=com.tms.cms.artic
le.Article_1ee4f3bf-
cb73c03a-179a49f0-
6b1d0320" Khazanah Nasional Bhd and CIMB Group have decided to merge Lippo Bank and PT Bank Niaga of Indonesia to comply with Bank Indonesia’s single-presence policy.
Bank Niaga, a 64%-owned subsidiary of CIMB Group, has submitted Khazanah’s plan to merge the two banks to the Indonesian central bank.
The single-presence policy requires those who control two or more banks in Indonesia to merge them, sell their stakes or form a holding company for their banks by end-2010, and are required to submit their plans by Dec 31.
Khazanah owns a 93% stake in Bank Lippo and 64% indirect stake in Bank Niaga via CIMB "
From:http://
en.wikipedia.org/
wiki/
Astro_(satellite_TV)
#Ownership_.26_Manag
ement"The operators of the Astro service, MEASAT Broadcast Network Systems, are a wholly owned subsidiary of Astro All Asia Networks plc, a consortium company comprising of government-linked and private companies. Major shareholders include the Usaha Tegas Group (42.7%) and Khazanah Nasional Berhad (21.6%). Astro was listed on Bursa Malaysia in October 2003".
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From these news,i found out that:
1.Khazanah has a good relationship with Lippo Group.
2.Lippo Group has very strong business presence in Indonesia;maybe politically too.
3.Banking industry in Indonesia has opened its door for Khazanah;maybe due to Lippo.
4.Next,Astro's venture in Indonesia with Lippo Group will also yield favourable results. Major shareholders of Astro includes Khazanah Nasional Berhad (21.6%) and EPF (7.26%)
5.According to (http://
www.bernama.com/
bernama/v3/
news_lite.php?
id=196545), Indonesia has a huge market with more than 30 million households and a current low penetration rate of 0.6 percent (about 200,000 subscribers).
6.According to (http://
english.people.com.c
n/90001/90777/
6263448.html)and (http://
www.tradingmarkets.c
om/.site/news/Stock%
20News/602257/)
,Astro pay TV service in Indonesia had secured the exclusive rights to live broadcasts of the English Premier League (EPL) in Indonesia.EPL is the favourite by Indonesians.See (http://
www.mediakonsumen.co
m/Artikel534.html)
7.Assuming that Astro is able to conquer 20% of Indonesia's pay tv,that will translate to about 6 million subscribers.Astro's operation in Malaysia (with around 2.2 million subscribers) is valued at RM 4.50.(See
http://
www.theedgedaily.com
/cms/content.jsp?
id=com.tms.cms.artic
le.Article_1a600aac-
cb73c03a-1248f2b0-
15b467a0).That will give Astro a valuation of around RM 16 (excluding India's operation) in the next 10 years.
8.Current price is a great discount to Astro's potential.It has vast up side than down side due to Astro's strong presence in M'sia.
Astro is undervalued.
