KUALA LUMPUR, June 26: State-owned Saudi Telecom will acquire a strategic 25 per cent stake in Malaysia's Maxis Communications in a deal worth $3.05 billion, the official Bernama news agency said on Tuesday.

Saudi Telecom president Saud Al Daweesh said the investment “will enable us to achieve our stated objective of 10 per cent of our revenue to be generated from external sources by 2010.” On completion of the agreement, Saudi Telecom will have a 25 per cent effective interest in Maxis and a 51 per cent 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 per cent stake in Indonesia's PT Natrindo Telepon Seluler and 75 per cent 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). —AFP