Maxis seeks Sri Lanka Telecom stake

26 Mar 2007
00:00

(Business Times via NewsEdge) Maxis Communications may join its parent company Usaha Tegas Sdn Bhd, controlled by tycoon Tan Sri Ananda Krishnan, to buy a stake in Sri Lanka Telecom.

Usaha Tegas's unit Global Telecommunications Holdings NV was given the green light by Sri Lanka Telecom to conduct due diligence before a possible purchase.
It is talking with Japan's NTT, which owns 35.2% of Sri Lanka Telecom, on a possible partial sell-down by the Japanese group.

'Given that Usaha Tegas is related closely to Maxis, we like to explore on how we can play a part in the transaction," Maxis group CEO Datuk Jamaludin Ibrahim said. 'We have the intention to consider on how we could go together with Usaha Tegas in the form of equity or management partnership.'

The 35.2% stake NTT has in Sri Lanka Telecom will cost about 790 million ringgits ($225 million).

Jamaludin was speaking to the reporters after his presentation to fund managers and analysts during the Invest Malaysia 2007 conference in Kuala Lumpur.

Jamaludin meanwhile said he expects Maxis' non-voice segment to contribute as much as 30% in revenues for the carrier in three years, helped by more content. Non-voice revenue currently contributes 20% to the group's total sales.

© 2007 Business Times

© 2007 Dialog, a Thomson business. All rights reserved

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