Saudi Telecom is to buy 25 per cent of Malaysia's Maxis in a $3 billion (€2.22 billion) deal to gain access to Indonesia and India.
The Saudi firm, the largest Arab telecom company, will also take 51 per cent of Maxis's Indonesian unit and invest in its Indian network, getting access to 1.4 billion people in two of the world's four-fastest growing mobile markets.
Saudi Telecom's part of the deal, which it valued at 11.4 billion riyals (€2.25 billion), would be funded in equal parts by debt and cash.
The Saudi operator would consider increasing its stake in Maxis to a maximum 30 per cent allowed in Malaysia, Chief Executive Saad al-Duweish said.
Analysts have said the deal was prompted by the huge capital demands of Maxis's overseas expansion plan, which could run into resistance from other shareholders. Maxis said last month it needed up to $4.4 billion in capital expenditure.