Tuesday, June 26, 2007

I can see and smell RAT as big as Maxis Tower

This story hasnt broke in Malaysiakini yet, but its on Reuters.
Is that $5.7 billion in USD?
What has Commerce Commission/Suruhanjaya Sekuriti is doing?
Its plain to see that Ananda Krishnan has inside information that the Saudi Telekom group would want to buy Maxis. He is probably in cahoot with them, 'take Maxis private first, then sell to the Saudi Telekom group.
what the malaysian regulators are doing?

this amount to robbing small shareholders to benefit majority shareholders!
ananda and co profits 1billion just like that in less than a month.
ananda must compensate small shareholders the one billion plus fine!
this is not right. this is injustice.
this will give bad image to foreign investor and small investor. that our regulation is lax and benefit big and powerful!

Saudi Telecom to buy Malaysia mobile firm
by Reuters on Tuesday, 26 June 2007
Saudi Telecom Co, the largest Arab telecom firm by market value, has agreed to buy a majority stake in Maxis Communications, Malaysia's biggest mobile operator, sources familiar with the matter said on Monday.

Saudi Telecom, which is bracing for the end of its fixed line monopoly this year, will announce the deal on Tuesday, the sources told Reuters in Riyadh. Neither could say how much the government-controll ed company had agreed to pay.

A 51 % stake in Maxis would be worth about $5.7 billion at the stock's last traded price.
Story continues below «

"They have reached a deal with the largest shareholder in the Malaysian company," one source said.

Saudi Telecom's spokesman Qusai al-Fawaz declined to comment when contacted by Reuters.

Malaysian firm Binariang, controlled by tycoon Ananda Krishnan, is the largest shareholder of Maxis. Krishnan has teamed up with other Maxis shareholders to buy the 41 % of the company they do not own in a $4.7 billion bid that will be Southeast Asia's biggest ever buyout.

Analysts said the buyout was prompted by the huge capital demands of Maxis' overseas expansion plan, which could run into resistance from other shareholders.

Maxis is banking on its Indian and Indonesian units for subscriber growth as its Malaysian operations ramp up data services like high-speed broadband to counter intensifying competition and a mature mobile market.

The cost of building businesses in the big emerging markets of India and Indonesia, with combined populations of about 1.4 billion people, has unnerved some minority investors. Krishnan wanted to accelerate the firm's expansion.

State-controlled Saudi Telecom is the only one of the five-largest Gulf Arab telecom operators that has not made foreign acquisitions, even after losing its mobile-phone monopoly in the world's biggest oil exporter in 2005.

The company said in May it aimed to get 10 % of its revenues from operations outside Saudi Arabia by 2010.

Saudi Telecom made its smallest quarterly profit in more than two years in the first quarter as competition eroded margins.
Rival Etihad Etisalat was able to capture 30 % of the market within 18 months of starting operations in May 2005.

Competition for mobiles in the largest Arab economy is set to intensify now that a consortium led by Kuwait's Mobile Telecommunications Co. has won a third mobile licence.

The government has said it will sell a second fixed-line licence this year.

here is what MAxis says:

Maxis parent denies details of reported Saudi deal
Tue Jun 26, 2007 12:23AM EDT

KUALA LUMPUR, June 26 (Reuters) - The parent of Malaysian mobile phone firm Maxis Communications (MXSC.KL: Quote, Profile, Research) denied on Tuesday a Reuters report that Saudi Telecom Co. (7010.SE: Quote, Profile, Research) was buying a 51 percent stake in Maxis.

A representative of the parent firm, Usaha Tegas, declined to say which details of the report were wrong and said a statement would be issued by both Saudi Telecom and Maxis later on Tuesday.

"It's wrong and the facts will be released later today," said the representative, who declined to give her name because she worked in an area of Usaha Tegas that was not authorised to speak to the media.

On Monday, sources familiar with the matter said Saudi Telecom, the largest Arab telecom firm by market value, had agreed to buy 51 percent of Maxis, which would be worth about $5.7 billion at Maxis's last traded price.

Saudi Telecom's officials could not be immediately reached for comment on Tuesday.


Anonymous said...

Dont worry bro, Havent you heard MAXIS stands for Mahathir and Ananda Xtra Income Source. Of course its good for the country, If they have got a billion dollar to spend. Imagine what they will buy and the Tsunami it will be, in generating income for the country. Afterall the Saudis are not taking transmission towers and ripping them out of the ground. Lastly the muslim will consolidate each others' economy. They buy our transmission towers hopefully they will let us build roads for them. Tit for Tat

nooryahaya said...

is that what MAXIS stand for? yes its a good acronym!