Highlight Maxis Communications denies allegations in India

by **Cals** Wed 03 Sep 2014, 22:41

Highlight Maxis Communications denies allegations in India

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 03 September 2014 08:55

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Filepic of tycoon T Ananda Krishnan in Sun Valley, Idaho, United States. Maxis Communications Bhd, which is controlled by Ananda, has issued a statement saying it would vigorously pursue all legal remedies available to defend itself

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KUALA LUMPUR: Maxis Communications Bhd (MCB), the single largest shareholder of Bursa Malaysia-listed Maxis Bhd, has denied allegations of constricting business environment in India in order to coerce Siva Ventures Ltd (SVL) to sell Aircel Ltd to it.

MCB in a statement yesterday categorically denies all allegations of any wrongdoing.

It said it would vigorously pursue all legal remedies available to defend itself and the company’s director Ralph Marshall given the apparent lack of regard to the overwhelming contradictory evidence, and the commencement of prosecution before the investigations are complete.

The statement was issued after MCB, which is controlled by tycoon Ananda Krishnan, learnt from Indian media reports that India’s Central Bureau of Investigation (CBI) had filed a charge sheet in relation to the perceived irregularities in MCB’s acquisition of Aircel.

MCB was charged under Section 120B of the Indian Penal Code of the Prevention of Corruption Act.

The charge sheet names nine parties involved in the lawsuit, including Marshall.

The charge alleges that the former minister of communications and information technology in India, Dayanidhi Maran, had abused his official position and constricted the business environment of Aircel between 2004 and 2005 with intent to coerce SVL to sell Aircel to MCB.

MCB said the transaction was completed on March 21, 2006 in compliance with Indian laws, with SVL being paid the full purchase price after receipt of the requisite approvals from various parties.

“MCB categorically denies and rejects any allegation of wrongdoing in the matter. MCB firmly believes that the allegations are totally unfounded and the charge-sheet has been filed without basis,” said the company.

The charge sheet added that Astro All Asia Networks plc (AAAN) had paid illegal gratifications to Sun Direct TV Pvt Ltd and South Asia FM Ltd by way of purchase of shares in the two companies at a premium.

In response to the news, Bursa-listed Astro Malaysia Holdings Bhd, in which Ananda holds a 42.39% stake, clarified that AAAN is a “separate and distinct legal entity and is not a member of Astro Malaysia Holdings Bhd”.

In separate filings with Bursa yesterday, both Astro Malaysia Holdings and Maxis said the charges filed do not implicate or impact the listed entities.

“We wish to clarify that Astro All Asia Networks Ltd (AAANL) is a separate and distinct legal entity and is not a member of the Astro Malaysia Holdings group of companies,” Astro Malaysia Holdings said.

“This development does not implicate and will not have any impact on Maxis, the entity listed on Bursa,” said Maxis.

Ananda has a deemed substantial indirect interest in MCB, Maxis AAANL and Astro Malaysia Holdings, while Ralph Marshal is a non-executive director in MCB, Maxis and Astro Malaysia Holdings and a director of AAANL.

Shares of Astro Malaysia Holdings closed 26 sen or 7.93% higher at RM3.54 yesterday, while Maxis’ share price ended the day down 5 sen or 0.76% to RM6.50.

This article first appeared in The Edge Financial Daily, on September 3, 2014.
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