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ASTRO Privatization May Lapse if 90% Condition Not met

About 84.3% of Astro All Asia Networks plc shareholders have accepted the privatization offer. However, the offer, which closes tomorrow, is conditional upon Astro getting 90% of shareholder support. Its current shareholding spread of 15.66% is not in compliance with the 18.82% requirement by Bursa. (Financial Daily)

Comment by TA Securities:
If the 90% condition is not met, the offer will lapse, after which the acceptances provided by shareholders  will be returned to them. EPF, which holds 8.61% stake, is the key to the  deal going through, in our view. As rumored, EPF may be holding out for a stake in the privatized company, which may be the reason it has not accepted the offer. For now, we maintain our target price to be on par with the offer price of RM4.30.