Idea defers open offer to Spice shareholdersAugust 14th, 2008 - 4:00 pm ICT by IANS
Mumbai, Aug 14 (IANS) Idea Cellular, India’s fifth largest private telecom operator, has deferred its open offer for an additional 20 percent stake in Spice Communications in which the Aditya Birla Firm has already picked up 41 percent stake through open market and block trade transactions in July. In a statement to the Bombay Stock Exchange Thursday, the company said: “The revised schedule of activities in respect of the offer pertaining to acquisition of the equity shares of Spice will be announced separately on receipt of observations from SEBI in terms of the regulations.”
The open offer was earlier scheduled to open Aug 22 and close on Sep 11.
Idea Cellular has acquired 2 million equity shares, representing 0.29 percent in Spice Communications, at an average market price of Rs.74.81 each through open market transactions on July 9.
Further, Idea Cellular through a block trade had acquired over 281.4 million equity shares, representing 40.8 percent at a price of Rs.77.30 per share.
According to the market regulation, Idea has to make an open offer to the Spice shareholders to acquire up to 137,985,050 equity shares of face value Rs.10 each representing in aggregate 20 percent of the paid-up equity share capital of Spice at a price of Rs.77.30 per share.
In the afternoon trade, the stock of Idea cellular was trading at Rs.87, down 0.45 percent from its previous close, and that of Spice Communication at Rs.74.40, losing 0.75 percent.
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