Maxis close deal on SLT

The Nippon Telegraph and Telephone Corporation (NTT), Japan's largest telecommunication provider has sold part of its 35 percent stake in Sri Lanka Telecom (SLT) to Usha Tegas Sdn, a subsidiary of Malaysia's largest mobile telephone operator, Maxis Communications Bhd, according to senior officials at SLT.

Stock market analysts confirmed this to The Sunday Times FT, saying that in order to avoid the Sri Lankan mandatory offer (where the buyer has to offer to buy the rest of the shares at the last highest traded price - if they acquire more than 30 percent of the company), Usaha Tegas Sdn, bought only 25 percent of NTT's 35.2 percent stake.

They also said that the government also plans to sell part of its 49.5 percent stake in SLT in the future. In 1997, a stake in SLT was sold to NTT for US$ 225 million. The company posted a Rs.5.4 billion profit for the last financial year.