Anil Ambani Insiders have leaked that Reliance Communications is in talks with Malaysia’s Maxis Communications to buy a controlling stake in its Indian unit Aircel Cellular. Maxis is Malaysia’s largest mobile operator. Reports suggest that the two firms were exploring options such as buyout or a joint venture. Aircel is valued at about $7 billion. Maxis holds 74% in Aircel while the owners of south India based Apollo Hospitals Enterprises control the rest.
Aircel has operations in very small circles such as Chennai & Tamilnadu and North East. Though they have PAN India license, they don’t have SPECTRUM to operate nor the required infrastructure. We at Dalal Street are negative about RCom if the deal sails through at $7 Billion and recommend a SELL on RCom stock.