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India's Micromax Close to Selling Stake to Chinese Investor

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Note -- this news article is more than a year old.

The Indian mobile phone manufacturer, Micromax is reportedly close to a deal to sell a 25% stake to China's Alipay, in a deal that could see the phone manufacturer valued at around USD5 billion.

The move follows several months of speculation that Micromax was looking for an outside investor to help it diversify and compete against Chinese rivals, especially Xiaomi.

According to Canalys, Micromax overtook Samsung (20%) as India's largest handset vendor with 22% of shipments in Q4 2014 quarter, although Samsung disputes the report.

Citing sources, the Economic Times newspaper reported that Alipay, an online payment portal would be working with 2-3 other companies to form a consortium for its investment.

The company had been reportedly to be looking for an investment of at least USD1 billion for the stake, so it looks as though the Alipay backed consortium is paying a modest premium for its stake.

In 2010, Micromax had filed for a stock market listing but later cancelled its plans citing poor market conditions.

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Tags: micromax  India