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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.
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