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Maxis Acquires Aircel

Maxis Communications enters the Indian market with the $1.08 billion acquisition of mobile operator Aircel

December 30, 2005

1 Min Read

KUALA LUMPUR, Malaysia -- Maxis Communications Berhad ("Maxis") and its Indian Joint Venture Company ("JVC") will acquire a 100% interest in a leading Indian mobile operator, Aircel Limited ("Aircel").

Maxis and JVC will jointly invest USD1.08 billion (RM4.104 billion) to purchase the 100% stake of which USD280 million (RM1.064 billion) will be injected into the company as cash. This implies a pre-money equity valuation of USD800 million (RM3.040 billion) for Aircel.

On completion of the proposed acquisition, Maxis will hold a 65% equity stake in Aircel directly while the JVC will hold the remaining 35%. The JVC will be an Indian company jointly owned by Maxis and its Indian partner in a ratio that will give Maxis an overall equity interest in Aircel of 74%, the maximum foreign ownership permitted in Indian telecommunications companies. Maxis' Indian partner in the JVC is the Chennai based Reddy family.

The transaction will be executed in two independent stages; the first, a subscription for new equity shares (26% of the expanded capital) and the second, the purchase of all of the existing equity shares held by Aircel Televentures Limited ("ATVL"). The second transaction will be subject to shareholders' and Malaysian as well as Indian regulatory approvals. (Details are set out in the attached announcement to Bursa Malaysia Securities Berhad).

Maxis Communications Bhd.

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