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Malaysia's Maxis confirms Aircel stake talks

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CIOL Bureau
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KUALA LUMPUR: Maxis Communications Bhd, Malaysia's largest mobile phone firm, said on Tuesday it was in talks with a number of Indian telephone operators, including Aircel Ltd, to help it expand.

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Maxis and state-run Telekom Malaysia Bhd were said to be in stake purchase talks with Chennai-based Aircel, in a deal valued at about $700 million.

"Maxis' strategy for overseas expansion has been to explore opportunities in emerging markets with good potential for growth," the firm said in a statement.

"Maxis has been approached by, and has been in discussions with, a number of operators in India including Aircel, and is narrowing down the options towards conclusion," it added.

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Both Maxis and Telekom are seeking investment opportunities in highly populated regional neighbours like India and Indonesia to seek growth, as its domestic market for new cellphone users approaches saturation point.

Both Malaysian firms have already invested in Indonesia, the world's fourth-most populous country, and are seeking more acquisition targets in India.

Telekom denied the talks with Aircel in a separate statement on Tuesday.

"We wish to confirm that Telekom is currently not engaged in any talks with Aircel to be its strategic partner," Telekom said.

"However, we wish to reiterate that Telekom is continuously reviewing all available options in respect of our investment strategy in India to complement our South Asian Investment in Sri Lanka, Bangladesh and Pakistan," it added.

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