THIS is the second time in its history that Maxis Bhd is ending the year with a bang.
The last time it grabbed headlines was when it announced the purchase of a 26% equity stake in India-based cellular network operator Aircel Ltd on Dec 30, 2005.
Eight years later, its majority owner, billionaire T Ananda Krishnan, grabbed headlines again on Christmas eve for transferring a block of shares which some reports say is tantamount to him exiting Maxis.
A media report from India even alleged that he was exiting Maxis to avoid being dragged into the Maxis-Aircel suit over a probe where former Indian Telecoms Minister Dayanidhi Maran is being alleged to have deliberately delayed the granting of some telecoms licences.
The papers go on to say the Ananda has pocketed US$10bil (RM33bil) from the deal.
These reports were sparked off by an off-market transaction that took place on Monday, which saw a block of 4.875 billion Maxis shares changing hands at RM7 a piece. The shares represented a 64.4% stake in Maxis and equals the number of shares owned by Ananda.
Ananda, via Usaha Tegas Sdn Bhd, owns 45% in the telco’s holding company, Maxis Communications Bhd (MCB), which, in turn, owns 64.4% in the listed Maxis.
The other shareholders of MCB are Saudi Telecom Co (25%) and certain bumiputra shareholders (30%). This transaction led to the speculation that he has sold out of Maxis.
However, in reality, it is just an internal restructuring. There are no changes whatsoever in beneficial shareholder, or change in shareholders, someone pointed out.
Essentially, BGSM Management Sdn Bhd, an investment holding company, has been set up to facilitate the debt restructuring of Binariang GSM Sdn Bhd. Binariang is an investment holding company with subsidiaries and affiliates that are involved in the Malaysian, Indian and Indonesian cellular telecommunications sectors through Maxis, Aircel and PT Axis Telekom Indonesia, respectively.
BGSM Management has proposed an RM10bil sukuk musharakah programme (2013/2043). The money will be used to refinance the outstanding sukuk, US dollar-term loans and/or the bridging loans of Binariang.
RAM Ratings Sdn Bhd assigned a final AA3/stable rating on the RM10bil sukuk on Dec 23.
The idea is to decouple BGSM Management and its subsidiaries from any adverse financial implications from MCB, given the poor showing of Aircel.
BGSM Management will own an indirect 64.4% stake in Maxis, hence the transaction.
Maxis last sold Islamic bonds six years ago with maturities of five to 50 years.
That aside, and on a lighter note, it is common to hear of chief executive officers (CEOs) twitting about their businesses and lives, although they rarely engage with customers.
Morten Lundal, the new man at Maxis – about two months old to be exact – tried just that last Friday.
One thing is for sure, though, he got to know customers’ grouses first-hand from his attempt.
One of the first tweets to him read “.... the line drops too soon now, what and why will you do to change?’’
There were others who asked: “The 3G service has dwindled over the years and network coverage not superior, plus call drops 5 in 10 calls. Can we see improvement?”; “Prices of devices are damn high”; “Maxis’ website is not user-friendly” and “Do you think Maxis is going to attract back its old customers?”.
One respondent said that Maxis’ prepaid rates were rather expensive, while another asked if all its “rates would come down”.
Even Telekom Malaysia Bhd sent him a tweet that read, “Hi Morten, bold move talking to customers live on Twitter. Good luck and all the best today”, while DiGi.Com Bhd wished him luck.
Was he surprised? I guess not, but it does go to show that Maxis’ competitors are on their toes, watching his every step.
One respondent wanted to know how tall he was, while others probed what motivates him as CEO, how he manages pressure given the huge expectations, why he decided to leave Vodafone for Maxis, etc.
While the Twitter engagement was only with a small segment of Maxis’ customers, it goes to tell that some customers do indeed want change, and unless Lundal takes the grouses seriously and makes those changes, the slow slide in customer numbers to other celcos will continue.
Now, it is really up to him to make Maxis sizzle again because its loyal customers have been waiting for far too long.- by B K Sidhu
Business Editor (News) B K Sidhu wishes everyone a blissful year ahead.
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