MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
Setback for Zambia Handset Factory as M.Mobile pulls out
Plans to set up a mobile phone manufacturing factory in Zambia faced a set back after the Malaysian backer, M.Mobile pulled out of the joint venture. The factory is due to have a unit capacity of 500,000 per year. M.Mobile Malaysia was expected to provide technical information and expertise but reportedly failed to deliver despite several requests from the Zambian company.
However, despite the set back the company says that it still expects to be able to start manufacturing within a couple of months having secured the necessary factory components from other suppliers. Zambia's Commerce Trade and Industry Minister Felix Mutati said in an interview earlier this year that, "Zambia will become the hub for exports of cell phones in the region,"
M.Mobile says that it is the world's first Muslim-owned mobile phone R&D and marketing company, in a partnership between Malaysia and China. This company is currently in operation under its parent company, Kosmo Technology which announced the acquisition of a 30% stake in M.Mobile in February 2006.