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Reliance Comm eyes stake in Maxis' India unit

Reliance Communications Ltd is in talks with Malaysia's Maxis Communications to buy a controlling stake in its Indian unit Aircel Cellular Ltd, the Mint said on Monday, citing sources from the two firms.

Reliance Communications is the number two mobile services firm in India, the world's fastest-growing mobile market with more than 6 million people signing up for mobile phones every month.

Maxis is Malaysia's largest mobile operator.

The newspaper quoted unidentified officials at Reliance Communications and Aircel as saying that the two firms were exploring options such as buyout or a joint venture.

A Reliance Communications spokesman declined comment on the report, while Aircel could not be immediately reached.

The Mint said analysts valued Aircel at about $7 billion. Maxis holds 74 percent in Aircel while the owners of south India based Apollo Hospitals Enterprises control the rest.

It also quoted an unnamed consultant as saying that Reliance Communications was eyeing management control in Aircel, either through buying a direct or a deferred stake depending on the rules set by India's telecom regulator.

Source: Reuters

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