B K Modi-led Spice Mobiles has announced that it will itself with the parent company Spice Televentures (STPL), as part of its efforts to consolidate the group's telecom businesses. The merger will result in creation of a new entity, 'Spice Mobility'.
"The merger will create 4.2 crore treasury shares, out of which one crore would be kept for employees, while the rest of the 3.2-crore equity would be put in the market to raise about Rs 300 crore," Modi told reporters in Delhi. .
The Rs 300 crore will be used to fund both the expansion of the group's mobile retail outlets and acquire smaller firms in the value added services (VAS) space.