Saudi Telco’s Planned Maxis Buy To Grant It Aircel Stake
By Anupama Chandrasekaran - Tue 26 Jun 2007 06:30 PM PST
Saudi Telecom Company’s plans to acquire a 25 percent stake in Malaysia’s largest mobile operator, Maxis Communications, could be its gatepass to India.[via Business Standard.] The deal will grant the Saudi Arabian telco an 18.5 percent indirect stake in Chennai-based Aircel, India’s fifth largest GSM telecom service operator. Maxis, which has a 74 per cent stake in Aircel, and Saudi Telecom will invest around $900 million in India, the article said. This will help Aircel expand its operations. “Saudi Arabian companies were looking at expanding into other markets as they have to pay huge premiums for licences in their country,” Sumit Modi, an analyst with Emkay Shares, told Business Standard. A Reuters article, valued the deal at $3 billion and said that this transaction is southeast Asia’s biggest buyout. Saudi Telecom is the only one of the five largest Gulf Arab telecom operators that has not made foreign acquisitions.
Will this development mean that Aircel Cellular may really no longer be part of the rumored talks with Idea and Spice for a three way merger?
Posted in: JV & Investment, Mobile
