New Delhi, July 1: Saudi Telecom is likely to get the government’s go-ahead to enter India through its purchase of a 25 per cent stake in Malaysian telecom company Maxis Communications. The $3-billion deal gives the Saudi Arabian company an 18.5 per cent indirect stake in Chennai-based Aircel Cellular. Maxis owns 74 per cent of Aircel.

According to the foreign direct investment policy, Saudi Telecom has to get a clearance from the Foreign Investment Promotion Board (FIPB). Senior officials said the proposal was likely to be cleared.

“The company is not interested in providing telecom services to security-sensitive third countries. Therefore, getting an FIPB clearance should not be a problem,” a senior official said. After the deal, Aircel’s foreign shareholding level will still be compliant with the FDI ceiling of 74 per cent in telecom. Saudi Telecom does not hold equity in other Indian telecom companies.

Earlier, Egyptian telecom service provider Orascom’s bid to get an indirect holding in Hutch-Essar by acquiring a stake in Hutchison International was thwarted. Vodafone’s acquisition of a 52 per cent stake in Hutch-Essar was also delayed because of problems in complying with the FDI ceiling.

India, the world’s fastest-growing telecom market, has been on Saudi Telecom’s radar for some time. The company has already chalked out big plans for the Indian market.

Maxis is privately owned by Malaysia’s second-richest man Ananda Krishnan through his firm Binariang. “Saudi Telecom and Binariang’s other shareholders will underwrite a $900-million loan to expand in India where Maxis operates through its Aircel unit,” said Mohammed al Jasser, chairman of Saudi Telecom.

“This transaction represents an important step for the company’s drive to become an influential player in the global telecom sector,” said the statement.

Binariang chairman Raja Arshad Raja Uda said, “The partnership 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 West Asia in a mutually beneficial way.”