Home » News » Regional News » Saudi Telecom to mull options for stake in Malaysia’s Maxis

Saudi Telecom to mull options for stake in Malaysia’s Maxis

 

Bloomberg

Saudi Telecom Co. is exploring options for its indirect stake in billionaire T. Ananda Krishnan’s Maxis Bhd., the second-largest Malaysian wireless carrier by market value, people with knowledge of the matter said.
The Gulf kingdom’s biggest telecommunications operator is gauging interest in its 25 percent holding in Binariang GSM Sdn., which is the controlling shareholder of Maxis, according to the people. The Riyadh-based company may consider selling the stake to a Malaysian pension fund or another financial investor, two of the people said, asking not to be identified because the information is private. The Binariang holding gives Saudi Telecom an effective 16.2 percent interest in Maxis valued at about $1.8 billion, data compiled by Bloomberg show. Binariang also owns a majority stake in Indian wireless carrier Aircel Ltd., which is merging with larger rival Reliance Communications Ltd. Saudi Telecom hasn’t started a formal auction process for its Binariang stake and could decide to keep it, according to the people.
Saudi Telecom joined Middle Eastern operators including Ooredoo QSC and Emirates Telecommunications Group Co. that plowed more than $10 billion into a wave of Asian acquisitions from 2005 to 2010, data compiled by Bloomberg show.
A representative for Saudi Telecom declined to comment. A spokesman for Maxis didn’t immediately respond to an e-mail and phone call seeking comment. Saudi Telecom said in July it’s working with domestic competitor Etihad Etisalat Co. to explore options for their tower networks. The two companies aim to enhance value from their infrastructure assets by reducing capital and operational spending on the towers, they said at the time.

Leave a Reply

Your email address will not be published. Required fields are marked *

Send this to a friend