Malaysian cellco Maxis Communications’ influence on Indian mobile operator Aircel has come under question.
A detailed investigation by the Economic Times stated that Maxis is a “large, and not marginal” player in the JV that holds a minority stake in…
Malaysian cellco Maxis Communications’ influence on Indian mobile operator Aircel has come under question.
A detailed investigation by the Economic Times stated that Maxis is a “large, and not marginal” player in the JV that holds a minority stake in Aircel, despite the fact that Indian foreign ownership rules stipulate that Indian companies must own at least 26% of the equity of any mobile operator.
Maxis owns 65% of Aircel, with the remainder held by Deccan Digital, a JV between Maxis and an Indian-owned company, Sindhya Securities and Investment.
The newspaper alleges that Maxis indirectly owns the preference shares in Deccan Digital, which equate to over 97% of the total capital in the business.
The preference shares are held by South Asia Communications, an Indian-based company whose capital is majority owned by Global Communications Service Holdings.
This holding company, based in Mauritius, is reportedly a part of Maxis.
While Global Communications Service Holdings reportedly only holds a 26% equity stake in Deccan Digital, equity capital only makes up 3% of the JV’s total capital. The preference shares comprise the vast majority of Deccan Digital’s capital.
India’s Central Bureau of Investigation (CBI), which is currently investigating the country’s 2G scam, is looking into the issue, the Economic Times says.
In its annual results for 2010, Maxis said that it owned 74% “effective equity interest” in Aircel.
Maxis did not reply to questions before the press deadline.
