Without disclosing any specific reason, consumer tech maker Spice Mobility has decided not to acquire any stake in New Spice Solutions, the company informed the BSE. Spice had said it would acquire New Spice Solutions and Omniventures Private Ltd. in May this year.
Spice mentions that New Spice Solutions does not have any significant business activity. It’s also not clear what exactly the company does other that belong to the ‘Service Industry’. Interestingly, in May, Spice had said it would complete the acquisition immediately in cash. The acquisitions would have made New Spice Solutions a wholly owned subsidiary of Spice Mobility.
Omniventures, the other acquisition Spice announced in May, is the more significant company of the two. In June, Spice Mobility had informed that Hindustan Retail had decided to transfer 100% stake in Spice Online Retail to Omniventures. This would make Spice Online Retail and its subsidiary company Hotspot Sales & Solutions wholly owned subsidiaries of Omniventures. In the same month, Spice Online Retail also incorporated Hotspot Sales & Solutions as a 100% owned subsidiary company to engage in the business of telecom devices.
The same month, Spice said it would sell a 49% stake in its subsidiary Spice Online to Digitone, a subsidiary of Beijing Digital Telecom Company. In exchange, Beijing Digital Telecom Company informed that it would acquire the stake for $2.5 million from Spice Mobility and form a joint ventures with Omniventures.
In January, Spice Mobility had acquired a 22.54% stake in Delhi-based Sunstone Eduversity in an all cash deal, and in July last year, it had acquired a 26% stake in telecom technology solutions providers Creative Functionapps Lab for an undisclosed amount.