Maxis Berhad has held preliminary discussions to sell its Indian unit, Aircel, with bankers representing Russia's Sistema as Malaysia's largest telecom operator 'listens to offers' because of regulatory uncertainty and the probe against its founder T Ananda Krishnan and other top officials for alleged involvement in a telecom scandal in India.
"Maxis sees itself as a long-term player in India, but will listen to offers, in the wake of regulatory and policy uncertainty. Bankers have brought many potential permutations and combinations for mergers and strategic alliances, including that of Sistema, to the company. The Malaysian company has held a few rounds of discussions with bankers representing Sistema. But the discussions could be considered serious only if they reach a stage where the potential suitor begins a due diligence of Aircel's accounts," said an executive close to Maxis with direct knowledge of the discussions.
The executive said Maxis was also upset with the way the investigating agencies had dragged Krishnan and other top officials into the probe surrounding the circumstances under which the Malaysian company acquired Aircel from serial entrepreneur C Sivasankaran.
The Central Bureau of Investigation is probing Sivasankaran's charge that he was pressurised to sell Aircel to Maxis by former telecom minister Dayanadhi Maran and that the Malaysian company's subsidiary made a quid pro quo investment of Rs 550 crore in a DTH company owned by the Maran family in return for the ex-minister's role in the Aircel transaction. Maran and Maxis have vehemently denied all wrongdoing.
A Sistema India spokesperson denied the company was in talks with Aircel. "Sistema Shyam Teleservices Ltd believes that the talk of engaging with other telecom service providers for a possible acquisition deal is motivated," said the spokesperson said.
Maxis mulls India exit, in talks to sell Aircel - The Economic Times
"Maxis sees itself as a long-term player in India, but will listen to offers, in the wake of regulatory and policy uncertainty. Bankers have brought many potential permutations and combinations for mergers and strategic alliances, including that of Sistema, to the company. The Malaysian company has held a few rounds of discussions with bankers representing Sistema. But the discussions could be considered serious only if they reach a stage where the potential suitor begins a due diligence of Aircel's accounts," said an executive close to Maxis with direct knowledge of the discussions.
The executive said Maxis was also upset with the way the investigating agencies had dragged Krishnan and other top officials into the probe surrounding the circumstances under which the Malaysian company acquired Aircel from serial entrepreneur C Sivasankaran.
The Central Bureau of Investigation is probing Sivasankaran's charge that he was pressurised to sell Aircel to Maxis by former telecom minister Dayanadhi Maran and that the Malaysian company's subsidiary made a quid pro quo investment of Rs 550 crore in a DTH company owned by the Maran family in return for the ex-minister's role in the Aircel transaction. Maran and Maxis have vehemently denied all wrongdoing.
A Sistema India spokesperson denied the company was in talks with Aircel. "Sistema Shyam Teleservices Ltd believes that the talk of engaging with other telecom service providers for a possible acquisition deal is motivated," said the spokesperson said.
Maxis mulls India exit, in talks to sell Aircel - The Economic Times
