(Bernama via Newsedge) Saudi Telecom announced that it will acquire a strategic 25% stake for $3.05 billion in Maxis Communications in a deal that will enable it to penetrate the lucrative telecommunications markets in Malaysia, Indonesia and India.
Saudi Telecom, which entered into an agreement to form a strategic partnership with Binariang GSM, called it a major step to expand beyond its home market.
Binariang is the principal shareholder of Maxis, the integrated telecommunications operator, and its subsidiary PT Natrindo Telepon Seluler.
Recently, Maxis, owned by business tycoon Ananda Krishnan via his private company Usaha Tegas, announced that it will be taken private to be better placed to penetrate the markets in Indonesia and India.
Saudi Telecom said the investment includes 'participation in a $900 million subordinated loan which will be underwritten equally by both Saudi Telecom and the existing shareholders of Binariang.'
It will invest together with the other shareholders of Binariang to fund the rapidly expanding international operations of Maxis in India and Indonesia.
On completion of the agreement, Saudi Telecom will have a 25% effective interest in Maxis and a 51% direct stake in NTS, Maxis' subsidiary in Indonesia.
Goldman Sachs International acted as exclusive financial adviser to the carrier
© 2007 Bernama
© 2007 Dialog, a Thomson business. All rights reserved