Idea Cellular to acquire Spice Communication

Most Commented

Unified Communication for your Biz

Improve your contact center performance. See how you can make a difference.

Watch Now

Reach the ICT Community

Engage and build your ICT audience with CIOL online advertising.

Know more

Idea Cellular to acquire Spice Communication

To buy 40.8 per cent stake in Spice at Rs 77.30 per share

Wednesday, June 25, 2008

Email This

Print This

Comments

RSS

BANGALORE, INDIA: Idea Cellular today said that it will acquire 40.8 per cent stake in Spice Communication Ltd at Rs 77.30 per share from MCorpGlobal Communications Ltd.

India's fifth largest mobile operator will also payment approximately Rs 544 crore to the Spice group as non-compete fee.

Idea and Telekom Malaysia International along with their affiliates will make an open offer for an additional 20 per cent stake in Spice. The open offer will be made at a price of Rs 77.30 per share.

The boards of Idea and Spice have approved the merger of Spice into Idea.

Spice shareholders will get 49 Idea shares for 100 shares in Spice.

Idea will make a preferential allotment to Telekom Malaysia of 464.73 million equity shares at a price of Rs 156.96 per Idea share representing 14.99 per cent of Idea's equity capital post allotment.

With this acquisition, Idea gains entry into the wireless markets in Punjab and Karnataka, which account for 11 per cent in India's total wireless market.

Spice has operations in two out of a total 23 telecom circles and has a customer base of more than 3 million while Idea is present in 11 circles and has a customer base of over 26 million.

"Idea will benefit operationally by leveraging synergies with TM International, which will be a significant shareholder in our company. Further I look forward to welcoming colleagues from Spice into Idea family," said Kumar Mangalam Birla, chairman, Idea Cellular Ltd.

DSP Merill Lynch acted as the financial advisor to Idea while Bharucha and Partners acted as legal advisors.
Lazard was the financial advisor while Norton Rose and Crawford Bayley acted as legal advisors, to TM International.

© CyberMedia News

Would you like to on this article?

Be first to comment on this article

Name
Email
Your reply

Polaris eyes emerging mkt post LaserSoft takeover

Arrested NASA scientist worked on Chandrayaan-1

Windows 7: Should CIOs migrate?

China wooing Indian IT companies

Rs.10,000 computer-phone by 2010-end

Apple's Steve Jobs named CEO of the decade

MAIT names Ravi Aggarwal as president

Lenovo Q2 net more than doubles

L&T unit in talks to buy Patni stake: report

Wipro buys Yardley personal care businesses

	Simplify Business Management. ERP solutions by IBM
	Carry your Dream, Convey your Value with ZTE
	Get EMC Efficient.Learn more

	Get expert views on Mobilin V2
	How to make your enterprise productive
	Unified Communication can impact business. Know how

	Making Web3.0 a Reality!
	CIOL Enterprise Next :What's NEXT in IT? :
	Decrease Total System Costs With Cyclone IV FPGAs

	Reach your desired Target Audience and realize high ROI
	Effective ways of Customer Acquisition through Demand Generation
	Reach 2,500 potential Enterprise Customers!