Investigation Finds No Evidence of Saudi Stake in India's Aircel
Published on: 5th Mar 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
An investigation into the shareholders at Malaysia's Maxis Communications and its Indian subsidiary Aircel by Indian authorities has not found any evidence of a direct shareholding in the company by Saudi Telecom.
The investigation was prompted following a complaint by the Indian politician, Subramanian Swamy, who had alleged there was a security issue at stake in having a Saudi firm investing in an Indian company.
Maxis Communications owns a 74% stake in the Indian mobile network, Aircel, as well as a 64% stake in its local Malaysian mobile network, Maxis Berhad.
Saudi Telecom (STC) also owns a 25% stake in the mobile network, but has no stake in the parent group, and hence no indirect involvement in the Indian mobile network either.
Subramanian Swamy had cited a joint intelligence committee report on Saudi Telecom for his concerns, although he did not say what the problem would be.
The Saudi Arabian government owns 70 percent in Saudi Telecom.