The Hindu : Business : Spice considers stake sale

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Wednesday, Jun 04, 2008
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Spice considers stake sale

Special Correspondent

ADDING SPICE: B. K. Modi, Chairman, MCorp Global, addressing the annual general meeting of Spice Telecom in New Delhi on Tuesday.

NEW DELHI: Spice Communications on Tuesday said it was considering a stake sale in the company and awaiting a proposal from the Malaysian company Telekom Malaysia, which now holds 39.2 per cent in the telecom service provider.

As per the current rule, a foreign company can raise its stake to 74 per cent in an Indian telecom firm. Spice has also been taking to UAE’s Emirates Telecommunications (Etisalat) and some other firms for stake sale. Telekom Malaysia partners Etisalat and NTT DoCoMo in some markets.

According to Spice Communications Chairman B. K. Modi, they were in talks with Telekom Malaysia and are yet to receive a formal proposal in this regard. “We are open to all offers, but the buyers will have to pay at least Rs.60 a share for the stake. We will try to get the maximum for shareholders,” he added.

With currently having operations in two of the 23 telecom circles, Spice Communications need funds to expand its infrastructure and services. “We have got four new licenses and are hoping to get more. We have to expand the company and its services,” he said.

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