Spice i2i Buys Indonesia's Mobile Firm Affinity For $175M

Spice i2i, part of the BK Modi-promoted Spice Group, has acquired Indonesian mobile player Affinity Group for $175 million. The deal will help Spice i2i establish a presence in the Indonesian market where Affinity has a 22-25% market share in the mobile handset business. Affinity owns the local brand "Nexian" and is one of the largest players in the country.

Singapore Stock Exchange listed Spice i2i Limited, earlier known as Media Ring Limited, was acquired by the Spice Group in 2009. The firm now has presence in mobile handsets, mobile value added services, internet communication & computing services.

The Affinity Group also deals in distribution of mobile connections from major operators in Indonesia besides handsets. It is expected to have revenue in excess of $680 million for the 12-month period ended December 2010. Affinity sells handsets of companies like BlackBerry, HTC, Motorola and has a network of branches, service centres and independent retailers as a part of its direct sales channel.

In December 2010, Spice i2i acquired NewTel Corporation, the second largest local branded mobile handset player in Thailand. The deal was done for around $22 million.

According to a filing, Spice i2i is also planning a rights issue to buy the remaining 35% stake in Spice CSL, the joint venture with Malaysia's CSL Mobile. Spice i2i also plans to acquire other companies in the CSL Group that are involved in the mobile handsets and mobile internet space like VAS, retail, after sales services etc.

This acquisition is in line with Spice i2i's strategy of creating a "Circle Of Champions" integration in the South East Asia Region and is an integral phase of the "Ivory Coast to Indonesia" (i2i ) Region strategy, said the company in a statement. ANZ Singapore Ltd. and DBS Bank Ltd. are the financial advisors to Spice i2i for the deal.