DALLAS-Motorola Inc. said it will invest $15 million in Dallas-based CellStar Corp. to hold a 3 percent interest in the company, which is one of the world’s largest wholesale distributors of cellular phone products. CellStar distributes Motorola products in the United States, Latin America, China, South Africa, the Philippines and Singapore.
Motorola considers the move a good financial opportunity and gives the company a chance to garner more international growth, said Motorola spokesman David Pinsky. “They can distribute our products in more places than we can,” Pinsky said.
Motorola will purchase shares of CellStar unregistered, newly issued common stock in a private transaction within the next 60 to 90 days. The move is designed to further the continued expansion of CellStar’s distribution business. The deal is expected to close at about the same time as CellStar’s new $125 million credit facility underwritten by Texas Commerce Bank National Association. The acquisition is subject to approval by the board of directors of both companies.
CellStar also has signed agreements with Motorola allowing it to distribute pagers, cellular phone accessories and wireless data products.
The company recently announced a joint venture in Singapore, South Africa and India to distribute cellular phones and accessories in those markets. CellStar also has acquired the remaining 50 percent interest in its Hong Kong joint venture company from partner A.S. Hong, giving CellStar 100 percent ownership.
