Maxis, Reddy's to buy Aircel for over $1 bn

Malaysian mobile giant Maxis in partnership with Chennai-based Reddy family's Apollo group will acquire 100% stake in Aircel for over $1 one billion.

Maxis Communications Bhd and the joint venture company (JVC)
will jointly invest $1.08 billion to purchase the 100% stake in the Tamil Nadu-based mobile operators.

Of the $1 billion, $280 million will be injected into the company as cash. This implies a pre-money equity valuation of $800 million 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%, Maxis informed Malaysian stock exchange.

The JVC will be an Indian company jointly owned by Maxis and the Reddy family in a ratio that will give maxis an overall equity interest in Aircel of 74%, the maximum foreign ownership permitted in Indian telecom companies.