Saudi Telecom to acquire 25 percent stake in Malaysia's Maxis



KUALA LUMPUR, June 26, 2007 (AFP) - State-owned Saudi Telecom will acquire a strategic 25 percent stake in Malaysia's Maxis Communications in a deal worth 3.05 billion dollars, the official Bernama news agency said Tuesday.
Saudi Telecom president Saud Al Daweesh said the investment "will enable us to achieve our stated objective of 10 percent of our revenue to be generated from external sources by 2010."

On completion of the agreement, Saudi Telecom will have a 25 percent effective interest in Maxis and a 51 percent direct stake in PT Natrindo Telepon Seluler (NTS), Maxis' subsidiary in Indonesia, Bernama said.

Saudi Telecom said its stake in Maxis would allow the Malaysian operator to negotiate more favourable terms with vendors and service providers and help create value for Binariang, which owns Maxis, and its shareholders.

Binariang chairman Raja Arshad Raja Uda said the alliance would benefit Maxis.

"This partnership with Saudi Telecom provides the opportunity to link Maxis, and its operations in Malaysia, India and Indonesia, to one of the largest and most reputable telecommunications operators in the Middle East in a mutually beneficial way," he said.

Maxis, Malaysia's largest mobile phone operator, owns a 95 percent stake in Indonesia's PT Natrindo Telepon Seluler and 75 percent of India's Aircel.

Binariang, a privately-owned company controlled by billionaire Ananda Krishnan, recently completed a buyout for Maxis in a deal worth about 40 billion ringgit (12 billion dollars).

jsm/skj

AFP

Saudis owns huge amounts of stcosk EVERYWHERE, even here in USA.

Saudi co. called SABIC recently bought General Electric's (a huge USA co.) Plastics Division for over $11 billion. UAE and Dubai companies are on multi billion dollar buying spree in america. A dubai co. paid $800 million for a newyork retail store. Gulf arab money has begun to pour back into US, even after Dubai Ports was politically forced to sell their contract to American co.

saudis are investing heavily all around the world

this is the largest single investment by a foreign company in malaysia to date.

this could give a good answer for those who ask "what will Saudi Arabia do when Oil is finished after several decades?" and then give the idiotic answer "they'll be poor and return to ride camels and fighting each other"

the answer is "After several Decades , the Kingdom's income will be dependant on its investments/shares arround the world. 'Crude Oil' income will be negligible for the Kingdom in the Future"

I sincerely hope and pray that Saudi income and revenues diversify such that oil is a negligible source. Also I hope and pray that the leadership of Saudi Arabia hold fast to the Rope of Allah and reject the vision of Fatah.

i agree, UAE is also doing exactly the same(i herd that there oil will run out in 10 years or so). But my question is, so does KSA plan to get all its revenue from stocks etc after oil runs out? isnt that a bit to risky cosnidering how shaky the stock market can be sometimes?
for exampel I know that UAE is also tryign to eastablish itself into a tourist hub

amin bro




stocks are markets to buy shares in companies , it depends on the companies that the Kingdom will buy shares in and that include industries and communication

yes it is risky but there are brilliant and well-trained specialists whom know how to invest in stock markets and when to buy and sell and there are lots of these specialists hired by banks

by the way there is a difference between "investments" in stocks and "buying and selling quickly" (<< i don't know the exact English term of it but we call it Mudharabah. example, you buy shares in a company and after two days it rised by 3% then you sell all your shares)

the investment is different than that , all what you do is look for a successful company that has shares in low prices (while its supposed to be in higher price) and buy shares in it and sleep well because you'll get an income for every share and this income is distributed by the company for the shares holders

thanks for the answer saudi arabian

Sauidi Arabian,

Most of Middle east money is in USA, and major investments of royale family and rich Arabs as well.

Why it is that they invest in USA but dont try to build their own industrial base in KSA where unemployment is forcing youth to protests?

i think KSA should follow UAE's example in this matter. UAE in additon to doing lot of investement around the world, are also building their local infrastructure alot. KSA defiently has the potetnial to transform itself into an industrial hub, they can perhaps produce hi-tech equipments?

Good news

I dont know how Sauidi Arabian justfies hiw claims of buying companies overseas and expects profits flowing in, Arabs own 25% assets in US corporate sector while they have no industrial base or any mentionable production at home which can make them a developed nation and provide education, employment and reserch at home.



For Maxis

you're welcome baltoro



1.because Americans consume alot.
2.any country must have an ammount of money outside inorder to make sure that its current (Saudi riyal) don't collapse if the Saudi economy is been targeted by enemies through "Mudharabah" in the currents markets on the Saudi riyal. according to a recent statement , the ammount of money which is governmental and semi-governmental (owned by the Saud's) are to reach 1 Trillion Saudi Riyals in the next two months.

we have good industrial base in here by the way , the problem is that building a factory seems to be expensive and the businessman may have to rely on foriegn companies to build the factory



the unemployment will be history , KSA will face a disaster of employment in the future if the universities don't quickly graduate many Saudi students in fields of medicine , information technology , teaching and accountancy if not then it will have to bring more foriegners because the new economical cities will provide over a million jobs (KAEC will provide a million jobs alone) and thats more than enough to get rid of the unemployment




what protests ?

1. If investment is in USA the taxes are used for US citizens not Sauidi's.

2. There is no threat to riyal and to keep curruncy strong you can have enough foreign exchange

3. Your argument of bringing in foreigners ..........situation is like egg first or chicken, once any country which develops industrial base have to rely on imported skills but with time locals get education and training and replace.

4. the unemployment will be history , this statement form a citizen of richest Muslim state dont make any one proud!

5. Back some time i was watching on malaysian TV some sort of protests by youth and after that governments announcement that taxi driver's job would be allocated for lacals.

Point what is human capital and industrial infrastructure of KSA, with a trillion riyal investment in high tech, KSA can be top exporter..........or at least bring that trillion to muslim countries.

bro you have no idea of the income , i'm telling you its now in the 900's billion SR's and in the next two months will reach 1 trillion SR




actually there is , the israelis can do it (they are more rich) to cause severe damage to the Saudi riyal and make it weak




more foriegn workers mean more local money to go outside. the foriegn workers in the Kingdom remite billions of $$$ every year to their homelands




most countries in the world have unemployment problems (including Malaysia) , here its estimated arround 10% (it probably became now more less) and its keeping on decreasing due to the Saudization program



i have never heard nor seen any protests on that issue. there were already some Saudis whom bought taxis and driving it

what happened is that the Saudization program was imposed on the taxi companies




and the next day we'll wake up to see something like 1$ = 500 SR

Saudi:

Yes. It is good to have a rosy picture. But not everyone agrees with 10% figure. Look at what your friends Americans think about you:

http://www.ameinfo.com/123859.html

Unemployment is high - estimates vary from 11% by the Saudi government to 25% by the US Department of State.

...the education system has not been designed to equip the youth with the requisite skills required by a modern economy, and more importantly the attitude. Add to this complacency on the part of many students - a very high proportion of university graduations are in the humanities - and the picture is stark.

I read somewhere that most Saudis study only stuff like Islamic history and Arabic grammar.

Anyway, like for other Islamic countries, I hope Saudis learn to make their own companies.