SoftBank in talks to buy $1 bn stake in Micromax: Sources

Written By Unknown on Kamis, 26 Maret 2015 | 21.04

A group of investors led by Japanese mobile telecom firm SoftBank Corp is in talks to buy a 20 percent stake in Indian handset maker Micromax Informatics for up to USD 1 billion, two people aware of the discussions said.

A group of investors led by Japanese mobile telecom firm SoftBank Corp is in talks to buy a 20 percent stake in Indian handset maker Micromax Informatics for up to USD 1 billion, two people aware of the discussions said.

The investment would value Micromax, an unlisted provider of affordable smartphones that competes with South Korea's Samsung Electronics Co, at around USD 5 billion, the people said. They did not want to be named because the talks aren't public.

One of the people said a deal would likely involve the sale of some 20 percent of Micromax by existing investors, raising USD 800 million to USD 1 billion. Micromax, controlled by its founders, counts private equity firms Sequoia Capital and TA Associates among its investors.

Micromax entered the Indian mobile handset market in 2008 and is credited with fuelling the rise of smartphones in the country. In February, research firm Canalys said Micromax overtook Samsung in the fourth quarter as the leading supplier in India's booming smartphone market, though Samsung later challenged the finding.

Micromax declined to comment. A SoftBank spokesman in Tokyo declined to comment.


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