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Spice buys Cellucom`s Indian arm in share-swap deal: report

According to the share-swap deal, Cellucom will take 26% stake in Spice Group’s mobile retail venture HotSpot while Spice Corp will buy 100% shares in Cellucom.

Spice Group has reportedly bought 100% stake in the Indian arm of Cellucom, a Dubai-based mobile retail chain. According to the share-swap deal, Cellucom will take 26% stake in Spice Group’s mobile retail venture HotSpot while Spice Corp will buy 100% shares in Cellucom.

“It’s a cash-less deal in which we will swap shares. We are buying 100% stake in Cellucom. The CEO and CFO of HotSpot will retain the positions in the new entity. Spice Corp will invest Rs 100 crore in the retail chain this year,” BK Modi, chairman, Spice Group, was quoted as saying.

The new entity is expected to gross about Rs10bn in revenue by fiscal year 2009. Cellucom has about 120 mobile and IT product stores in the country. HotSpot has about 500 mobile retail stores. The Spice Group is expected to announce a new brand for the merged entity, which has over 2,200 employees.

Source: India Infoline

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