Wednesday June 27, 2007

Abdullah lauds Saudi Telekom’s purchase of Maxis shares

ROME: The US$3.05bil (RM11bil) purchase by Saudi Telecom of Maxis shares is a vote of confidence in the Malaysian economy, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

“I have just heard about the deal. I am very happy with it.

“This is a reflection of the confidence they have in Malaysia. It is not easy to get them (the Saudis) to invest,” he told Malaysian newsmen covering his visit here.

Saudi Arabia’s largest phone company, Saudi Telecom Co (STC), is taking a 25% stake in Binariang GSM Sdn Bhd, the parent company of Maxis Communications Bhd, in a deal worth US$3.05bil (RM11bil).

It was reported that Saudi Telekom had agreed to pay US$11bil for a 25% stake in Maxis, which has already been taken private by Usaha Tegas Bhd, a company controlled by tycoon Ananda Krishnan.

Under the deal, Saudi Telekom also gets control of Maxis’ Indonesian operations.

The deal also values Maxis at US$12bil, or RM16.40 a share, 5% more than the RM15.60 a share Binariang paid to take Maxis private.

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