Indiantelevision.com's Digital Edge: Malaysian tycoon Krishnan to buy out telco Maxis

Indiantelevision.com's Digital Edge

Malaysian tycoon Krishnan to buy out telco Maxis

Indiantelevision.com Team

(30 April2007 10:25 pm)

MUMBAI: Business magnate T Ananda Krishnan, Malaysia's second richest man, is looking to buy out Maxis Communications, the South East Asian country's biggest mobile-phone operator.

Krishnan's investment company Usaha Tegas and its affiliates hold a 46 per cent stake in the telecom giant, which is valued at $ 9.6 billion. Mopping up the remaining 54 per cent would cost Krishnan a reported $ 5.1 billion. The buy offer is expected to be made by 3 May.

India is reportedly a big part of the strategy involved in Krishnan's intention to take complete control of Maxis. The telco is lining up spends in the region of $3 billion over the next five years to expand its network in India.

India's exploding mobile market (121 million as of March) is what is attracting Krishnan's more than casual interest. While over 70 per cent of Malaysia's 27 million population own mobile phones, the figure in India is just 10 per cent, so the upside potential is massive.

Maxis said this month it plans to spend $3 billion in the next five years expanding its network in India to counter slowing growth at home.