Cable TV

Telekom Malaysia acquires 49% stake in Spice Telecom

MUMBAI: Telekom Malaysia Berhad (TM) has secured a critical piece in its regional footprint, with the acquisition a 49 per cent stake in India's Spice Communications Pvt Ltd (Spice) for a consideration of $178.85 million.

The acquisition, made through TM’s international investment holding company TM International Sdn Bhd (TMI) involved the purchase of the stake held by Deutsche Bank AG and Ashmore Investment Management Limited consortium (DBA).

The remaining 51 per cent remains with the existing shareholders, the Mcorp Global Ltd and its associates (Mcorp).

A statement jointly released in Kuala Lumpur and New Delhi stated that the definitive agreements governing the transaction were executed in Kuala Lumpur today. Completion of the transaction is expected within a month, subject to closing conditions and regulatory approvals. A media conference-cum-briefing explaining the transaction was also held in Kuala Lumpur jointly by senior TM and Mcorp officials.

Spice is a privately held company incorporated in India providing cellular telecom services in the states of Punjab and Karnataka. The company commenced operations in 1997 after receiving its cellular licences from the Government of India.

With the company’s recent decision to migrate to the Unified Acess Licensing regime, the scope of services allowable has since broadened to further include full and limited mobility fixed and wireline services, VAS, as well as broadband services.

Through new applications, the company is also in the process of obtaining licences for 6 new circles (namely Jammu/Kashmir, Haryana, Rajasthan, Himachal Pradesh, Uttar Pradesh West/East), as well as National Long Distance (NLD) and International Long Distance (ILD) licences.

According to TM chairman Tan Sri Mohd Radzi Mansor, the proposed investment is consistent with TM’s objectives of becoming a significant mobile player in the Asian markets, and to participate in the growth opportunities in the Indian cellular market. TM, which has re-strategised its international investments to focus on regional markets closer to Malaysia, has strong presence in the Asia Pacific region, with investments in Sri Lanka, Bangladesh, Indonesia, Cambodia, Singapore and Pakistan.

"India is the missing piece in our regional footprint. Now with Spice as part of the TM family, it strengthens our regional presence and complements our existing presence in Sri Lanka where we are the number one, and Bangladesh where we are the number two mobile operator. We are excited about sharing our experience and learn more about the Indian market from Spice," he said.

"With Punjab being the most prosperous state in the country and Karnataka dubbed as the “Silicon Valley” of India, there is tremendous potential for mobile telephony in these markets. We are optimistic that Spice will contribute positively to the overall performance of TM in the near future" he added.

TM Group CEO Dato’ Abdul Wahid Omar described organic growth as the key approach for creating shareholder value in Spice. "Apart from growth through new cellular circles expansion, we are excited about the implementation of other services under the Unified Access licensing regime. TM and its partner Mcorp will seek to grow Spice to be a market leader in the geographies it operates in, including attaining a pan-India presence," he said.

"Spice customers today join TM’s global mobile subscriber base of over 20 million. Apart from TM’s operational and management experience both in Malaysia and key Asian regional markets, Spice customers stand to benefit from through the creation and innovation of new products and services, sharing of technological experience and implementation, and the leveraging of group synergies such as in global procurement," he further added.

Mcorp Global chairman Dr B K Modi described India and Malaysia as natural allies and which have strong historic cultural ties, and share the same values and aspirations.

"Today, both countries are at the forefront of the revolution in information, communication and entertainment (ICE) technologies and have much to offer each other. Together, they could become a powerful force to take Asian companies to an entirely new globally competitive level," he said.

"We are totally committed to the principles of enhancing human productivity – boosting the prosperity of the entire Asia Pacific region, and promoting global peace for the sake of all humanity. It is now time to redefine our relationship, rewrite our destiny, and reinvent the future. I am confident our strategic partnership with TM will create a new synergy and help us in maximizing growth in one of the world’s fastest growing markets," Modi added.

Dr Modi also described Spice as the pioneering brand of mobile telephony in India, committed to becoming the most preferred choice for energetic young minds through synchronised performance in ICE products and services. Spice, he said, has been built on the bedrock of its values: fun, innovation, vibrancy, empathetic, trustworthy and fast to respond. It has a presence in two of the high potential markets of Punjab and Karnataka.

Lazard India were sole financial advisors to TM and TMI on this transaction.

Latest Reads
India, China to provide 50% of global pay TV subs by 2023

NEW DELHI: India and China will together provide half the world’s pay TV subscribers by 2023, according to a new global report that forecasts 95 million additional pay TV subscribers would get added between 2017 and 2023 to take the global total to 1.10 billion. China will continue to supply about...

Cable TV Multi System Operators
DEN expands broadband services; plans Rs 100 cr capex

DEN Broadband Pvt Ltd (DEN) has expanded its hi-speed internet services to 100 cities across India. After an encouraging response to the pilot project in five cities, DEN has already started its first phase of expansion in 15 cities.

Cable TV Multi System Operators
Den Networks appoints Himanshu Jindal as CFO

Den Networks has appointed Himanshu Jindal as chief financial officer with immediate effect.

Cable TV People
Hathway Bhawani appoints Vatan Pathan as CEO

Hathway Bhawani Cabletel & Datacom ‍(Hathway Bhawani) has approved the appointment of Vatan Pathan​ as CEO with immediate effect. Pathan has been the additional director at Hathway Bhawani Cabletel and Datacom Ltd since 7 November 2017.

Cable TV People
Hathway CFO Vineet Garg resigns

Hathway Cable and Datacom chief financial officer (CFO) Vineet Garg has resigned which will be effective from 15 May 2018. He has also resigned as a director from the board of Hathway Bhawani Cabletel and Datacom.

Cable TV People
TDSAT prohibits Scod18 from relaying IndiaCast channels

Scod18 Networking Pvt Ltd (Scod18), a multi-system operator (MSO), has been restrained by the Telecom Disputes Settlement Appellate Tribunal (TDSAT) from taking signals of IndiaCast Media Distribution Pvt Ltd’s (IndiaCast) channels from any other operator.

Cable TV Multi System Operators
Ortel to issue shares worth Rs 8.75 cr to promoters

The board of directors of Ortel Communications, the multi-system operator (MSO), has approved the issue of equity shares to promoter group entities.

Cable TV Multi System Operators
INDUSIND Media live telecasts "Magnetic Maharashtra Convergence 2018 - Global Investors Summit"

INDUSIND Media & Communications limited of Hinduja Group provides the live telecast of events from “Magnetic Maharashtra Convergence 2018 – Global Investors Summit” through their Indigital services for the benefit of all their viewers in Greater Mumbai, Maharshtra and some Key cities in India...

Cable TV Multi System Operators
Hathway leads the way in wireline net subs addition in Q3

BENGALURU: Over the past few years, multi-system operators, or MSOs, and cable television operators have been trying to enhance revenue by offering broadband internet services riding piggyback on their cable TV network wires.

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories