Malaysian billionaire Ananda Krishnan’s death sparks questions over succession in vast business empire
His daughters’ interest in the business is unclear, his monk son has renounced wealth, and a professional team ensures operations continue with minimal disruption
[KUALA LUMPUR] The death of reclusive billionaire T Ananda Krishnan, one of Malaysia’s richest tycoons and business icons, has sparked intrigue over the future of his multibillion-dollar business empire.
While analysts expect minimal impact on his Malaysian-listed companies – leading telco Maxis, prominent broadcaster Astro Malaysia and global oilfield services provider Bumi Armada – due to robust professional management, questions remain about who will inherit and lead the sprawling conglomerate.
The tycoon, widely known as AK or TAK in close circles, died on Nov 28 at the age of 86 after a prolonged battle with lung disease.
Throughout his remarkable career, Ananda shunned the limelight, even amid high-stakes merger and acquisition deals – some of which were unmatched in scale and complexity at the time. He was ranked by Forbes in April as Malaysia’s third-richest person, with a net worth of US$5 billion.
He was the founder of the country’s second-largest telco Maxis, and of Astro Malaysia; he also held a substantial stake in Bumi Armada.
The potential successors of the multibillion-dollar business empire, anchored by his flagship private vehicle Usaha Tegas Sdn Bhd (UTSB), remain a significant question a week after his death, although analysts expect his three children to inherit the business at some point. None are currently involved in his enterprises.
Neoh Jia Man, portfolio manager at Tradeview Capital, said the tycoon’s two daughters are likely to inherit his assets, given that his only son renounced his share of them at the age of 18.
The son, Ajahn Siripanyo, chose a monastic life more than two decades ago, in line with the Theravada Buddhist tradition, which bars the accumulation of personal wealth.
He is now the abbot of Dtao Dum Monastery near the Thailand-Myanmar border, and his commitment to the monastic life raises doubt on the possibility of his taking on any role in his father’s empire.
Another analyst, who asked not to be named, said little is known about the involvement of the two daughters in the business and whether they have an interest in leadership roles.
The analyst added: “The lack of engagement from his children adds to the uncertainty surrounding succession. Nevertheless, life moves on, because these companies are well run by a professional team.”
Neoh agreed, and said that the immediate impact of the tycoon’s death on his sprawling business empire is expected to be muted for this reason. “However, we currently lack insights into whether the family has any plans to restructure the holdings in the future.”
Minimal impact to operations
Ananda, as the key founder and shareholder of both listed and private entities, had already delegated operational responsibilities, including oversight of his family office, to professional management teams, according to Neoh.
“He adopted a more passive role, and was no longer actively involved in the day-to-day operations of these firms. Hence, his passing is expected to have minimal impact on the operations of these firms,” he added.
In response to enquiries from The Business Times, an Astro Malaysia spokesperson confirmed that the company continues to operate as usual.
“In line with our governance structure, the day-to-day operations of Astro are managed by the chief executive officer and the management team, who report to our board of directors,” said the spokesperson.
Astro added that independent directors make up half the board, ensuring robust oversight.
Also, its shares are directly held by the Usaha Tegas group of companies, the operations and governance of which remain unchanged. Khazanah Nasional, Malaysia’s sovereign wealth fund, also continues to be a major shareholder.
Maxis and Bumi Armada did not respond to BT’s questions.
Mixed performance on share prices
The share-price performance of companies associated with Ananda has been mixed over the past week. Analysts believe these movements were influenced more by company-specific developments than by the loss of the well-respected business leader.
On Thursday (Dec 5), Maxis’ shares closed at RM3.50, slightly down from the close of RM3.51 on Nov 28, the day the tycoon died. He held a 62.2 per cent equity interest in Maxis through his private company, BGSM Equity.
Astro’s shares rose to RM0.24, a 9 per cent increase from the RM0.22 the week before. Ananda owned a 41.2 per cent stake in Astro via All Asia Media Equities, which is controlled by UTSB, along with East Asia Broadcast Network Systems and Usaha Tegas Entertainment Systems.
The shares of Bumi Armada rose by nearly 13 per cent on Thursday, trading at RM0.62. Ananda held a 34.5 per cent stake there, through Objektif Bersatu.
Bumi Armada is mulling over a merger with MISC’s offshore business. If the merger goes through, the combined entity will emerge as one of the leading floating production companies globally, equipped with significant scale, resources and financial capacity.
Ananda, a Harvard Business School graduate, had extended his interests beyond corporate ventures to Australian thoroughbred racing, merging Kia Ora Stud with Vinery Stud in 2023 and later acquiring a major shareholding in the renowned nursery.
