Malaysian Concern to Buy Stake in Costa Mesa Firm

A Malaysian conglomerate said Wednesday it will buy a stake in Satellite Technology Management Inc. for $6.9 million.

Berjaya Group Berhad said it will purchase 693,188 shares of the Costa Mesa company’s stock for $10 apiece. The deal will boost Berjaya’s stake in the maker of satellite communications networks to 20%.

The two companies plan to form a joint venture, Berjaya-STM Telecom Ltd. to offer telecommunications services in the Asia-Pacific region, said Emil Youssefzadeh, chief executive of Satellite Technology.

Berjaya bought 405,106 shares of Satellite Technology from two principal shareholders for $9.10 each, or $3.68 million, plus 123,000 shares on the open market. The deal will increase Satellite Technology’s assets to more then $32 million. Satellite Technology makes satellite communications networks that serve as telephone or data communications networks, especially in areas where laying telephone wires is difficult. The company’s networks are popular in island nations such as the Philippines.

Berjaya is a billion-dollar conglomerate with holdings in the resort and recreation industries.