It is being reported that Sony Ericsson is in talks to buy India based handset manufacturer, Spice Mobile. The company is currently a subsidiary of the BK Modi group and sells phones under the Spice brand.
BK Modi controls 64% of the handset manufacturer and is understood to be looking for a sale which would value the company at around US$164 million - which is about three times its current stock market valuation.
A top source in the Spice group confirmed to The Economic Times that while talks were on, the deal had not been finalised. The source also added that initially, Spice Mobile had approached Sony Ericsson for a "wide-ranging collaboration and partnership", but as the talks progressed, it was felt that an acquisition would suit both companies better. “If Sony Ericsson were to acquire more than 50% in Spice Mobile, it will have to make an open offer as per our regulations. They want to acquire a majority stake, but it has not yet been finalised if it will be a 100% buyout,” the source added.
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BK Modi controls 64% of the handset manufacturer and is understood to be looking for a sale which would value the company at around US$164 million - which is about three times its current stock market valuation.
A top source in the Spice group confirmed to The Economic Times that while talks were on, the deal had not been finalised. The source also added that initially, Spice Mobile had approached Sony Ericsson for a "wide-ranging collaboration and partnership", but as the talks progressed, it was felt that an acquisition would suit both companies better. “If Sony Ericsson were to acquire more than 50% in Spice Mobile, it will have to make an open offer as per our regulations. They want to acquire a majority stake, but it has not yet been finalised if it will be a 100% buyout,” the source added.
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