EXCHANGE OF ‘COMPLETION DOCUMENTS’ BETWEEN TM AND MCORP GLOBAL ON ACQUISITION OF SPICE
Dato’ Abdul Wahid Omar (left) shaking hands with Dilip Modi, President of Mcorp Global while Deputy Prime Minister Datuk Seri Najib Tun Razak and representatives from the Indian business council and confederation of Indian industry look on. |
Telekom Malaysia Berhad (TM) today solemnised the acquisition of 49 per cent stake in Spice Communications Private Limited (Spice) of India by having an exchange of the ‘completion documents’ in New Delhi, India.
Deputy Prime Minister Datuk Seri Najib Tun Razak who is currently on an official visit to India witnessed the exchange. TM was represented by its Group Chief Executive Officer, Dato’ Abdul Wahid Omar while Mcorp Global was represented by its President, Dilip Modi. The exchange marks TM’s entry into the lucrative Indian telecommunication market, one of the fastest growing telecommunication markets in the world.
With the completion of the acquisition, TM is now the proud owner of 49 per cent equity stake in Spice. TM secured this critical piece in its regional footprint, through its international investment holding company TM International Sdn Bhd. The acquisition was for a total consideration of USD178.85 million. The remaining 51 per cent equity remains with the existing shareholders, the Mcorp Global Ltd and its associates (Mcorp).
Dato’ Abdul Wahid Omar described organic growth as the key approach for creating shareholder value in Spice. “TM and its partner Mcorp will seek to grow Spice to be a market leader in the geographies it operates in.
“We are bullish on India. The Indian government statistics indicate that India, one of the fastest growing telecom markets in the world, is among the top10 countries in the world in terms of the size of its telecommunications network and ranks second to China in Asia. The mobile subscriber base increased from 6.5 million in 2002 to around 80 million in January 2006, a CAGR of 109 per cent. TM wants to be part of that growth,” added Abdul Wahid.
Spice, considered as one of the best service providers of mobile telephony in India, operates in the states of Karnataka and Punjab, which have combined population of some 79 million people. Punjab is the state with the highest GDP per capita in India. Spice currently has some 2.0 million subscribers in the two states.
About TM
Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies in Bursa Malaysia with an operating revenue of more than RM13 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.
The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.
For further information on TM, visit www.tm.com.my
About TM International Sdn Bhd
Through its investment-holding arm, TM International, TM is one of the leading regional telecommunications companies with operations and financial interests in Sri Lanka, Bangladesh, Pakistan, India, Iran, Indonesia, Singapore, Thailand and Cambodia.
TM International has a track record of adding value to its investments, and an approach which focuses on developing the skills and capabilities of its local management teams and working in partnership with these local teams to achieve strong market positions and profitability.
Contribution from TM’s overseas operations continued to grow in significance. For the first quarter 2006, TM’s overseas operations contributed 19.6 per cent to Group profits (excluding gain on foreign exchange) and 24.3 per cent to Group revenue.
About Spice Telecom
Spice Telecom the brand name of Spice Communications Private Limited is presently operating Cellular Phone Services in the states of Punjab and Karnataka. Considered as one of the best service providers of mobile telephony in India, Spice Telecom is a flagship company of MCorp Global (www.mcorpglobal.com) a pioneer in introducing cellular mobile telephone services in India and has interests in the fields of Information, Communication and Entertainment (ICE). Launched over nine years ago, Spice’s cellular services have a customer base of 2.0 million in the challenging and lucrative Punjab and Karnataka markets.
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