France Telecom Reported to Be Seeking Indian Investment

France Telecom is reported to be in talks to take a stake in India's Aircel for between US$1.4-$2 billion. The French company is said to be in talks with Malaysia's Maxis, which owns 74% of the company to take the stake. In the meantime, Maxis shareholder, Saudi Telecom is looking to increase its holding in the firm from 25% to 35%.

The Economic Times newspaper said that estimates of the valuation of Aircel, which has a subscriber base of 19.6 million, vary between $7 billion and $8 billion. Aircel currently operates in 13 of India's 22 service areas, and recently outlined a US$5 billion expansion program over the next three years.

An Aircel spokesperson told the newspaper that "we are not aware of any discussions with France Telecom about this matter. Maxis Communications and its partners remain firmly committed to the accelerated growth and development of Aircel to be a successful pan-India operator." A France Telecom spokesperson said, "We do not comment on market rumours."

In related news, Maxis' CEO, Sandip Das denied recent rumours that the company would seek a stock market listing to raise funds for its expansion programs. CIMB Research, in a research note on Monday, said Maxis would be seeking a relisting, possibly as early as September this year. This was refuted by the company.

On the web: Economic Times

Posted to the site on 11th June 2009