New Delhi, Dec 2: Asian Infrastructure Mezzanine Capital Fund has acquired 15 per cent shareholding in Modicom, the cellular operator in Punjab and Karnataka circles, leading to the company being rechristened as Spice Communications.The company has received an investment of Rs 260 crore from Prudential Asia Infrastructure Investors and Asian Development Bank, the two partners in the fund. Of the total investment, Rs 90 crore has gone towards the equity into the joint venture between BK Modi flagship ModiCorp and Hong Kong-based Distacom, leading to change in name of the company. The balance Rs 170 crore has been invested in secured subordinated debentures.
Following the investment, the company's board has been reconstituted and will now comprise besides BK Modi and Distacom chairman Richard J Siemens, Prudential president and CEO Joseph W Ferrigno III, Prudential director Michael Jones, Asian Infrastructure Fund LP nominee Pho Ba Quan, Emerging Markets Partnership chairman Moeen Qureshi and Lazard Asia nominee William Peter Fong. AIMCF's decision ``reinforces the potential of cellular business in India and the sound prospect of Spice Communications,'' said ModiCorp chairman BK Modi, in a press statement.
``Prudential is bullish on the potential of cellular voice and wireless internet business in India. Spice is one of the stronger companies in the field and we look at this as an excellent medium term investment,'' said Ferrigno.
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