Cable TV Powered by

Maxis shareholders approve acquisition of Aircel

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/07/22/Untitled2.jpg?itok=8VekhnT7

MUMBAI: Maxis Communications Berhad announced at a press conference in Kuala Lumpur, that it is on track to complete the USD1.08 billion acquisition of Indian mobile operator Aircel Limited, after receiving shareholders’ approval.

Upon the completion of the proposed acquisition, Maxis will hold a controlling 74 per cent equity interest in Aircel, as a result of its 65 per cent direct stake and 9 per cent indirect stake via its participation in Deccan Digital Networks Private Limited. Deccan Digital is the joint venture company Maxis has set up with the Chennai based Reddy family. The JVC will own a 35 per cent direct stake in Aircel.

Maxis currently holds 26 per cent of the issued and paid up share capital of Aircel, in a transaction completed on 6 January 2006. The completion of the transaction is still subject to Malaysian and Indian regulatory approvals, and is expected to complete soon after receiving the requisite approvals from India’s Foreign Investment Promotion Board.

In total, Maxis will directly invest US$702 million for its equity interest while the JVC will invest the remaining US$378 million, states an official release.

“We are pleased that our shareholders have given us the mandate to make this strategic entry into the high growth Indian market. In this fast growing, low mobile penetration telecommunications market, our aim is to transform Aircel from being perceived just as a regional operator to a national player,” said Maxis chairman, Tan Sri Dato’ Megat Zaharuddin.

He added, “This major step will immediately boost Maxis’ growth as Aircel is already serving 2.4 million customers in its current markets. In the longer term, our investments in India and Indonesia will ensure Maxis’ strong top line and bottom line growth, thereby, creating significant value for all our stakeholders”.

Aircel is one of the leading mobile players in Tamil Nadu and Chennai. It is focused on expanding its services to 10 new circles by the end of 2006. Services were launched in five of these circles, West Bengal, Orissa, Assam, North East, and Jammu & Kashmir, in late 2005. The company expects to roll out mobile services in five other markets, Bihar, Himachal Pradesh, Madhya Pradesh, Uttar Pradesh (E), and Uttar Pradesh (W) by the end of this year, the release adds.

Aircel has also received an additional 1.8 Mhz spectrum in Chennai to support its growth in the south, as well as frequency for Bihar where rollout is expected to commence soon. In addition, the company has applied for licences in eight new circles, Haryana, Kolkata, Kerala, Punjab, Mumbai, Karnataka, Rajasthan and Maharashtra. This will allow Aircel to reach an additional 28 per cent of the population, or cumulatively 86 per cent of India’s total population.

“We are committed to making the significant investments necessary to become a pan Indian player. Investments of US$500 million are required support the rollout in the new circles where we have either launched services or are in preparation for launch.

“Given the rapid growth in the circles in the past few months, more investments are planned to support the existing and additional circles that we are targeting,” said Maxis CEO Dato’ Jamaludin Ibrahim.

The intention is that the capital for these investments be raised at the Aircel level.

Aircel’s director, V. Srinivasan added, “We are excited at the potential of the company now that Maxis is set to become our major shareholder. With Maxis’ financial strength and market experience, Aircel is now well positioned to participate in the national growth of the telecommunications market”.

The Indian mobile market, with its low mobile penetration rate, is amongst the fastest growing in the world. It recorded a 108% annual growth to reach 75 million subscribers by year-end 2005, while its January growth of 4.68 million users puts it on par with China for the first time. By 2008, the number of Indian subscribers is expected to grow between two and three times from 2005.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/01/16/den.jpg?itok=X8UT9TVb
Den reports lower numbers for third quarter

BENGALURU: Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd reported 6 per cent drop in consolidated operating revenue numbers for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/01/15/TrueVisions.jpg?itok=LjG9wHP8
Thailand's largest pay-TV operator TrueVisions extends partnership with Synamedia

LONDON and SINGAPORE, 15 January 2019 – Synamedia, the largest independent video software provider, today announced it has extended its seven-year partnership with TrueVisions, Thailand’s leading pay-TV operator.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/01/09/si.jpg?itok=pJrF_1gx
SITI Networks launches My SITI mobile app

SITI Networks Limited (BSE: 532795, NSE: SITINET), an Essel Group company, has launched My SITI mobile app for its customers.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/01/08/tv.jpg?itok=_Ehkuf0S
Pay TV subs show first ever decline globally

MUMBAI: The third quarter of 2018 saw a slight fall in pay TV subscribers, making it the first ever marked changed and probably a point of worry for cable and DTH operators world over. The decrease was by 0.11 million, down by 0.02 per cent, as per informitv’s Multiscreen Index reported by Advanced...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/01/02/tv.jpg?itok=0MVLLQW9
Hathway, DEN, Siti reveal packs under new TRAI tariff order

Major DTH players and MSOs have started updating new channel and package pricing as per the new TRAI tariff order. Soon after major broadcasters announced new rates, DPOs are taking swift action making it easier for consumers to choose their desired channels. Last month, TRAI gave an additional one...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/27/tv.jpg?itok=DAGo6DKa
Maharashtra stares at possible 3-hour cable TV blackout today as LCOs flex muscle

Cable operators across the country, and particularly in Maharashtra, seem to have upped the ante in their confrontation with the Telecom Regulatory Authority of India (TRAI) over the new tariff order that will be applicable to the broadcast sector from 29 December 2018. At a protest gathering in...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/18/ortal.jpg?itok=FwRrOvsd
Ortel loss mounts: NCLT orders insolvency process

Ortel Communications Ltd (Ortel) reported a higher loss for the quarter ended 30 September 2018 (Q2 2019, period or quarter under review) as compared to the immediate trailing quarter Q1 2019 and the corresponding year ago quarter Q2 2018. On 27 November 2018, the National Company Law Tribunal,

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/06/vbs.jpg?itok=MdZkrwW8
The challenge of DD FreeDish and new tariff order for DPOs

With the emergence of a large number of OTT platforms and cord-cutting globally, the future of pay-TV looks bleak. The talk of the town is how pay-TV industry will manage to survive the crisis. Moreover, the new tariff order (NTO) in India is also set to overhaul the entire ecosystem.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/den.jpg?itok=MEILIG20
Den reports improved numbers for Q2 over Q1

The Sameer Manchanda-led Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd

Cable TV Local Cable Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories