SE Asian firms buy 47.7% of Idea

NEW DELHI: Grasim Industries Ltd has informed BSE that the company and other investors of Idea Cellular Ltd have signed an agreement with the Consortium of Singapore Technologies, Telemedia (ST Telemedia) and TM International agreeing with the consortium to acquire the 47.7 percent stake in Idea.

Under the terms of the agreement the consortium will acquire the entire stake from Cingular Wireless and simultaneously, put additional capital into Idea. Upon the completion of the transaction, the Consortium will become the single largest shareholder of Idea with a 47.7 percent stake.

The Indian shareholders will continue to collectively own a majority 51 percent stake (the Aditya Birla Group with 26.3 percent and the Tata Industries with 24.7 percent). As a result, the company's shareholding will dilute from 7.6 percent to 5.947.7. The transaction is subject to usual closing conditions and government approvals. The transaction of the Consortium acquiring 47.747.7 stake in Idea is anticipated to be completed in the first quarter of 2005.

On completion of the transaction, the Consortium and the Indian shareholders will have an option arrangement that enables the Tata Industries and the Aditya Birla Group to sell, and the Consortium to purchase their shares in Idea, subject to certain conditions being met, the exact details of which option will be provided upon completion.