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< Esato Forum Index > Sony Ericsson / Sony > General > Sony Ericsson in Talks to Buy Indian Mobile Phone Manufacturer Bookmark topic

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.

SOURCE
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Posted: 2008-07-11 15:54:25
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SE planning to by other company? I thought they are in trouble before.
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Posted: 2008-07-11 16:45:00
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Coz the cost to made fone in China is uprising,
it's time to find other countries' factories which are lower costs
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Posted: 2008-07-12 04:22:46
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Spice is not a mobile phone manufacturer, they are Service Providers like Vodafone and T-Mobile.
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Posted: 2008-07-12 05:50:09
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Spice is not only a service provider but also a phone manufacturing company located in chennai india. The worlds first micro disk player mobile phone was made by it this year.
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Posted: 2008-07-12 06:36:47
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What the hell SE. :/
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Posted: 2008-07-12 07:42:22
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Goes to show you shouldn't believe everything you read on the internet.


Quite right!
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Posted: 2008-07-12 08:32:36
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SE are not in trouble (unless you are an analyst that is).

They are profitable, they have a large cash pile (even larger now they sold their Symbian stake to Nokia) and are selling well (despite a recession).

So why all the fuss in the media ? As usual, you are only as good as your last quarter and SE had a quarter that was not as good as expected + issued a profit warning that Q2 would also be lower than expectations.

Note: they did not announce a loss, they did not announce cash flow problems, they announced that their earnings + profit will be lower than expectations.

Of course if analysts had more realistic expectations.......

On the bright side, a year from now analysts will be singing praises for SE. They will be comparing Q1 + Q2 2009 to Q1 + Q2 2008 and because Q1 + Q2 2008 was lower than expected, it will make Q1 + Q2 2009 look higher than expected and thus SE will have higher growth than expected (assuming of course SE is back on track).

And people wonder why the business cycle is so up and down
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Posted: 2008-07-12 09:29:11
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i think it's a stupid move on se's part & i say this because india is going through an inflation crisis, the likes of which india has never seen before, which is probably why the modi group is selling spice.
i also think cdma indian giants like reliance & tata will make sure the indian government gives se a hard time on their soil as both reliance & tata are in close conjunction with nokia.
btw, so will the new se phones now have a "made in india" tag on the back???
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Posted: 2008-07-12 20:40:49
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Surely SE should be working on its tie-up with Sagem. They're still to produce anything and everytime I ask SE, I get told to 'watch this space'. Apparently we'll see some really good low-end products later this year, but I am starting to wonder!
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Posted: 2008-07-13 02:05:13
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