Investor to take Maxis private

30 Apr 2007

Malaysian tycoon Ananda Krishnan is planning to buy out Maxis Communications writes Reuters, in a deal that could be worth at least USD5 billion. Maxis gave no reason for the buyout plan but industry analysts are speculating that Krishnan might want to relist Maxis overseas and raise foreign capital to fund international expansion. Krishnan-controlled firm Usaha Tegas, a major shareholder in Maxis, has notified the company that it and its affiliates will make an offer by Thursday. Krishnan held an indirect interest of 47.05% in Maxis as of April 2006. At the current share price, a buyout bid for the remaining 53% would cost around MYR17.4 billion (USD5.1 billion).

Maxis, which operates in a highly competitive and saturated market at home, is believed to be keen to expand into less developed Asian markets like Indonesia and India. Maxis owns India’s Aircel and Indonesia’s PT Natrindo Telepon Selular, both unlisted. It has said it plans to spend USD450 million this year on its Indian operations.

Malaysia, Maxis, Maxis Mobile