Top mobile operator Maxis Communications has announced that it would buy Indian mobile company Aircel Limited for US$1.08 billion in a joint venture with an Indian partner.

"We are delighted to make this strategic entry into the Indian telecommunications market," Maxis chairman Megat Zaharuddin said in a company statement.

"This exciting acquisition, which is also the largest Malaysian investment ever in India, marks another milestone in our aspiration to be a regional communications player of choice," he said.

On completion of the proposed acquisition, Maxis will hold a direct 65 percent equity in Aircel, while a company formed with its Indian partner, the Chennai-based Reddy family, will hold the remaining 35 percent.

The Reddy family own the Apollo Hospitals Group, the largest private hospital group in Asia, and also has interests in the electronics and financial sectors, said the statement.

The joint venture will be owned by Maxis and the Reddy family at a ratio that will give Maxis an overall equity interest in Aircel of 74 percent, the maximum stake foreign investors are allowed to own in Indian telecommunications companies.

Investments in Indonesia, India

Maxis earlier this year acquired a 51 percent stake in Indonesian company PT Natrindo Telepon Seluler and Megat hailed the Aircel deal as a step forward in its regional expansion plans.

"With investments in both India and Indonesia, we now have the opportunity to build strong footholds in two of the world's most attractive high growth, low mobile penetration markets while diversifying our market base," said Megat.

Aircel is a leading mobile operator in the southern Indian state of Tamil Nadu and posted a profit of US$25 million for its 2005 financial year to March 31.

Maxis, controlled by tycoon Ananda Krishnan, is Malaysia's premier telecommunications company providing voice and data services.