indias-idea-cellular-buys-spice-communications

India's Idea Cellular buys Spice Communications

Aditya Birla telecommunications company Idea Cellular acquires control of Spice Communications in a cash and share deal that gives Spice shareholder Telekom Malaysia a strategic stake in the post-merger entity.

By Sameera Anand

June 25, 2008

IndiaÆs Idea Cellular has bought a controlling interest in Spice Communications in a cash and share transaction, in the latest instance of consolidation in IndiaÆs telecommunications sector. Idea will spend cash of up to Rs37.9 billion $886.5 million and issue new shares. The deal will give Telekom Malaysia, which is a shareholder in Spice, a stake of up to 19% in Idea.

Idea Cellular will buy 40.8% in Spice Communications from its current owners, the Spice Group, at a price of Rs77.30 per share totalling Rs21.8 billion. Idea will also pay Rs5.44 billion to the Spice Group as a non-compete fee. On a per share basis, including the non-compete fee, the controlling shareholders of Spice...

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