Maxis Communications’ largest shareholder reduces stake

30 Jul 2012

Ananda Krishnan, Malaysia’s second-richest man and the majority stakeholder in local telecommunications provider Maxis Communications, has reportedly divested around 375 million shares in the company, worth around MYR2.35 billion (USD740.5 million). According to Reuters, which cites a source familiar with the deal, the shares were priced between MYR6.21 and MYR6.34 per share, with CIMB and Credit Suisse understood to have been the joint bookrunners on the stake sale.

Meanwhile, local news source the Star Online noted that the sale, which reduced Krishnan’s holding Maxis from 70% to 65%, was made via several off-market deals, amid claims that the stake was sold to mostly local funds. A number of Malaysian investment vehicles already held notable stake in Maxis prior to this transaction, with the report stating that Employees Provident Fund and Skim Amanah Saham Bumiputera held 5.30% and 5.21% of the company’s shares respectively as at 27 July 2012.

While no clear reason for the stake sale has been given, it has been suggested that it may have been conducted with a view to raising additional funds for the expansion of the company’s oversees businesses, which include Indian mobile network operator Aircel, in which Maxis holds a 74% stake.

Malaysia, Maxis