Saudi Telecom says that it is spending just over US$3 billion to take an effective 25% stake in Malaysia's Maxis Communications and 51% stake in Indonesia's Natrindo Telepon Seluler ("NTS") - both mobile network operators which are subsidiaries of Malaysia's Binariang.
Binariang, which is controlled by Ananda Krishnan is currently engaged in buying the 41% of Maxis which it does not currently own. After the Saudi Telecom investment though, Binariang's holding would be reduced to 75%. The transaction would value Maxis at around US$12 billion. Maxis' ownership in NTS will be reduced to 44%, while STC will own 51% as a result of its investment.
STC will participate in the recapitalization and restructuring of Binariang which, under the terms of the current take-private offer, will hold 100% of Maxis, and will invest together with the other shareholders of Binariang to fund the rapidly expanding international operations of Maxis in India and Indonesia. This investment includes participation in a US$900 million subordinated loan which will be underwritten equally by both STC and the existing shareholders of Binariang.
Eng. Saud Al Daweesh, President of STC said: "We are extremely satisfied today to announce this investment which marks our first major transaction outside Saudi Arabia. We are excited at the prospect of expanding our footprint to these new markets in partnership with Maxis, which has a strong experience in the Asian telecommunications markets. Our participation in the recapitalization and restructuring of Maxis at this stage gives us a unique opportunity to play a strategic role in guiding the future direction of the company. This investment will enable us to achieve our stated objective of 10% of our revenue to be generated from external sources by 2010."
Posted to the site on 26th June 2007
Posted to: www.cellular-news.com/story/24568.php