Tuesday, January 22, 2008

Spice plans Dubai, Singapore listing

January 21, 2008
By Melanie Lee in Reuters


SINGAPORE (Reuters) - Indian conglomerate Spice plans to list on the Dubai or Singapore stock exchanges in 2010, and to raise about $100 million from an initial public offering of its mobile services unit in May or June, its chief executive said.
Spice, which owns telecommunications firm Spice Communications and Spice Mobiles, is looking to list its mobile value-added services firm, Cellebrum, in Bombay and Singapore, and will also list its mobile retail unit Hot Spot, by year end.
"At the end of 2008, we will have four listed entities," Bhupendra Kumar Modi, Spice's chief executive, told Reuters in an interview on Monday.
According to Modi, Cellebrum has been valued at around $500 million, but will be offered to the market at a lower price to benefit shareholders.
Spice Corp, which has 12 subsidaries, will list the main holding company in two years.
"Initially, we want to list all our companies," Modi said.
Spice Communications, which has a stock market value of $748.8 million, competes with the telco giants Bharti Airtel and Reliance Communications in India.
Operating in only two out of India's 23 telecom zones, it also aims to double its subscriber base to at least eight million by 2008.
The firm, 39 percent-owned by Telekom Malaysia, is also in talks with local telecommunications firms Singapore Telecommunications Ltd. and StarHub Ltd. to provide value-added mobile services.
"We are talking to SingTel and StarHub to see whether we can provide these services," Modi said, but declined to give details of the contract size.
Modi said the firm has already secured a contract with MobileOne Ltd. to provide these services on a revenue-sharing basis. The firm plans to announce details at a conference held in Singapore, aimed at fostering business ties between India and Singapore.

Link of the story:
http://in.reuters.com/article/businessNews/idINIndia-31502020080121