Saudi Tele wait for govt move on Aircel buy

Saudi Telecom is expecting the go-ahead from the Indian government soon for its India entry following the 25% stake buy in Malaysia's Maxis Communications, which owns 74% of Chennai-based Aircel.

"The details of the deal, which will enable us to enter the Malaysian and Indian markets, will be available within a week," Saudi Telecom spokesman Saud ibn Dafer Al-Qahtani said.

The $3 billion deal, announced on June 26, gives the Saudi company a 18.5% indirect stake in Aircel Cellular. Aircel will have to seek Foreign Investment Promotion Board approval for the change in shareholding.

The deal is similar to that of Egyptian telecom operator Orascom's acquisition of 19% stake in Hong Kong-based Hutchison Telecom International (HTIL) two years ago, which gave it an indirect 10% stake in Hutch-Essar.

While Maxis controls majority shares of Aircel, the balance 26% is held by the Reddy family of the Apollo Hospitals group.

Aircel operates in eight circles, and has applied for a pan-India licence from the government depending on the availability of spectrum.