Idea to acquire 40.8 per cent in Spice Communications
June 25th, 2008 - 4:54 pm ICT by ANI New Delhi, June 25 (ANI): The Aditya Birla Group’s Idea Cellular today announced that it would acquire a 40.8 per cent stake in its rival mobile operator Spice Communications, for over Rs 2,700 crore in shares and cash.
Besides, Idea and Telekom Malaysia would make an open offer to acquire a further 20 percent stake in Spice for over Rs1, 000 crore.
The Malaysian firm would get over 46.4 crore Idea shares on a preferential basis for about Rs 7,300 crore.
Idea would acquire 281,489,350 shares of Spice Communications, representing a 40.8 per cent stake, at a price of Rs 77.3 per share.
The merger would involve an exchange ratio of 49 Idea shares for every 100 shares of Spice, subject to all regulatory approvals, including the Department of Telecommunications
“Idea will benefit operationally by leveraging synergies with TMI which will be a significant shareholder of our company,” Idea Cellular Ltd Chairman Kumar Mangalam Birla said.
The deal allows Idea to explore wireless markets in Punjab and Karnataka, which constitute 11 per cent of the countrys total wireless subscribers.
In reaction to the announcement, shares of Idea Cellular rose by 6.80 per cent over its previous close in the Bombay Stock Exchange. (ANI)
- BK Birla for Mangalam Timber, Mangalam Cement merger - Jul 01, 2010
- Idea Cellular to buy 40 percent stake in Spice Telecom - Jun 25, 2008
- Idea Cellular stock falls 4.52 percent - Feb 22, 2011
- Return 3G license fees if roaming pact illegal: Telecom biggies - Nov 22, 2011
- Spice chairman, managing director quit board (Lead) - Jun 25, 2008
- India's broadband airwaves auction to fetch $8.6 billion (Roundup) - Jun 11, 2010
- Broadband auction winners to pay up license fee by June 22 - Jun 12, 2010
- Idea Cellular's third quarter net profit declines - Jan 23, 2012
- Will find way out of Supreme Court verdict: Birla - Feb 14, 2012
- US government sues to block AT&T;, T-Mobile merger - Sep 01, 2011
- Final decision on 3G roaming after meeting operators: DoT - Nov 28, 2011
- Idea defers open offer to Spice shareholders - Aug 14, 2008
- Mahindra Satyam to acquire minority stake in Dion Global - Feb 10, 2012
- American billionaireset to take over Gunners - Apr 11, 2011
- Reliance Communications hikes call tariffs by 20 percent - Aug 14, 2011
Tags: aditya birla group, bombay stock exchange, company idea, crore, idea cellular ltd, karnataka, kumar mangalam birla, mobile operator, New Delhi, preferential basis, punjab, regulatory approvals, rs 2, spice communications, synergies, telekom malaysia, tmi, today announced that, wireless markets, wireless subscribers