He might have lost out to other serious bidders in the auction for Satyam Computers early this year, but BK Modi (promoter of Spice Group) is not letting go of his ambitions in the IT sector. Spice has acquired around 20% stake in Singapore Stock Exchange listed IT company MediaRing Ltd for about Rs200 crore (~$40 million).
Mediaring which is a service provider for voice, data and computing services including Voice over Internet Protocol (VoIP) technology, and has global presence with subsidiaries in Asian cities such as Kuala Lumpur, Tokyo, Shanghai and Beijing. For the second quarter Mediaring
reported revenues of $27.65 million with net profit of $0.17 million.
According to disclosures made to Singapore Stock Exchange, Spice is acquiring 14% stake in Mediaring from one of its large shareholders Venture One Finance Ltd and would acquire another 4% options held by few of its executive directors and follow up with buying out employee stock options from those who opt to surrender them. At the end, Spice would have close to 20% in the firm. The deal is scheduled to be completed by the end of this month.
Pursuant to the transaction, BK Modi and two others including Divya Modi and Mediaring CEO designate Ashok Goyal shall be appointed as new directors of the company with Modi as chairman of the Board. Goyal would replace Khaw Kheng Joo as the CEO while Suramya Gupta will replace Yeo Siew Chai as the CFO of the company.
Spice Group has been reportedly on the prowl looking for various acquisitions after having exited telecom services venture in India-- Spice Communications which was sold off to Idea Cellular. That deal brought cash for the Modis which is waiting to be deployed.