France Telecom and Australia’s Telstra are in talks with Malaysia’s Maxis Communications to buy a minority stake in Aircel. Market estimates of Aircel’s valuation, which has a subscriber base of 19.6 million, vary between $7 billion and $8 billion. If the deal goes through, France Telecom will end up paying $1.4-$2 billion for a 20-25 per cent stake in Aircel.
Meanwhile, Saudi Telecom, which owns a 25 per cent stake in Aircel’s parent company, Maxis, is likely to increase its stake to 35 per cent for about $1 billion. Proceeds from the sale of Maxis’s stake will also be used to invest in Aircel. Goldman Sachs is advising Saudi Telecom in its transaction with Maxis. The deal with Saudi Telecom is expected to be complete soon.
