ABTL gets $640-mn funding from Providence

MUMBAI, INDIA: Providence Equity Partners will invest $640 million in Aditya Birla Telecom Limited (ABTL), a wholly-owned subsidiary of Idea Cellular Limited.

ABTL, a wireless communications company, will use the fund for network rollout and ongoing operations. The transaction, which is expected to close by August, is subject to regulatory approvals.

DSP Merrill Lynch acted as the financial adviser to Idea on the transaction.

“This commitment will bolster our position as a leading telecom player in India,” said Sanjeev Aga, managing director, Idea.

“This transaction demonstrates the sustained effort of the Aditya Birla Group towards strengthening businesses and creating value for shareholders,” said Kumar Mangalam Birla, chairman of Idea and the Aditya Birla Group.

ABTL owns the telecom UAS license for the Bihar service area and will hold a 16 per cent stake in Indus Towers.

The company has already received spectrum for the region and is in an advanced stage to roll out mobile services under the Idea brand in the next few months.

Indus Towers is a joint venture company formed by Vodafone Essar Ltd, Bharti Airtel Ltd and Idea Cellular Ltd to provide passive infrastructure services to mobile operators in 16 telecom service areas.