HCL Info to buy 20% stake in Dubai's Techmart Telecom

NEW DELHI: IT hardware services firm HCL Infosystems today said it will pick up a 20 per cent stake in Dubai-based Techmart Telecom Distribution, the distributor for Nokia smartphones in the Middle East and Africa region.

"We have signed the share purchase agreement (SPA) for acquiring a 20 per cent stake in the company through our Singapore subsidiary, HCL Investment," HCL Infosystems CEO Harsh Chitale told PTI.

HCL is one of Nokia's distributors in India. Chitale declined comment on financial details of the deal.

"With this strategic development, we are now well-positioned to further expand our global distribution footprint and this also strengthen our presence in the Middle East and African countries," Chitale said.

The agreement provides HCL with the option to acquire up to a 51 per cent equity stake in the company, Chitale said, adding that HCL will also provide consultancy and operational support services to Techmart Telecom.

"HCL Infosystems brings over a decade of expertise in the field of distribution. We look forward to work closely with them in growing the Nokia smartphones business in the region," Techmart President M P Sharma said.

In July this year, the company had picked up a 60 per cent stake in another Dubai-based firm NTS Group, which provides IT services and solutions, for USD 6.5 million.

Earlier this year, HCL Infosystems had announced that it has earmarked USD 100 million for acquisitions in emerging markets like Africa. The company had raised about Rs 800 crore through the QIP route last fiscal to expand its operations and finance potential acquisitions.