Friday, March 10 2006 20:04 Hrs (IST) - World Time -

Kuala Lumpur: Malayasia's state-controlled top telecom operator Telecom Malaysia is to buy a 49 per cent stake in India's Spice telecom Ltd, both companies said here today (Mar 10 2006).

Telecom Malaysia has become the second Malaysian company to grab a stake in the fast growing lucrative mobile phone sector in India. Earlier, Maxis acquired a 74 percent stake in Aircel.

Telecom Malaysia, which is controlled by the government, will pay 178.8 million dollars for the stake in Spice telecom, which is India's seventh largest cellular company.

Spice has around 1.82 million subscribers in Punjab and Karnataka.

Telecom Malaysia is buying the 49 percent stake held by Ashmore Investments and Deutsche Bank AG, while India's Modi family will retain a controlling 51 percent stake.