Thursday, June 26, 2008

Idea Cellular All Set To Acquire Spice - June 26, 2008

Idea Cellular, part of the Aditya Birla group, is all set to buy 40.8 per cent stake in Spice Communications for about Rs 2,176 crore at a price of Rs 77.30 per share. Besides, Idea will also pay Rs 544 crore to the Spice group as non-compete fee, taking the total deal size to about Rs 2,700 crore.

Later, Idea will make a preferential allotment of 464 million shares to Malayasian telecom company, TM International (TMI), which at present holds about 39 per cent stake in Spice, at a price of Rs 156.96 per share. This represents 14.99 per cent of Idea''s equity capital post-allotment.

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