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Idea makes open offer for further 20% stake in Spice

Idea makes open offer for further 20% stake in Spice
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First Published: Mon, Jun 30 2008. 11 32 AM IST
Updated: Mon, Jun 30 2008. 11 32 AM IST
PTI
Mumbai: Aditya Birla group firm Idea Cellular has made an open offer to the shareholders of Spice Communications for acquiring additional 20% stake in the telecom services provider for about Rs1,066.63 crore.
Idea Cellular along with Persons Acting in Concert (PACs), including Telekom Malaysia International (TMI), TMI Mauritius, TM International Berhad and Green Acre Agro Services have made the open offer for a further 20 per cent stake in Spice Communications.
“The open offer would start on 22 August, and would close on 11 September,” the company said in a filing to the Bombay Stock Exchange.
Earlier on 25 June, Idea Cellular, the fifth-largest mobile operator in terms of subscribers, said it would acquire 40.8% stake in B K Modi-owned Spice group for Rs2,716 crore.
The deal would catapult Idea Cellular’s market share to 11.1% and more importantly would get the crucial spectrum on 900 Mhz band.
The Birla group company had said it would merge Spice with itself through a share swap, where Spice shareholders would get 49 Idea shares for every 100 Spice shares held. It would also pay an additional Rs544 crore as non compete fee.
The long-drawn acquisition would give Idea straightaway two existing circles of Punjab and Karnataka with a subscriber base of 4.4 million.
In the morning trade, Idea shares were trading at Rs97.10, down 0.36%, while Spice Communication shares were up 0.62% at Rs72.50.
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First Published: Mon, Jun 30 2008. 11 32 AM IST