Idea acquires 41 pc in Spice Comm thru open mkt, block trade

Idea acquires 41 pc in Spice Comm thru open mkt, block trade
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First Published: Wed, Jul 09 2008. 03 30 PM IST
Updated: Wed, Jul 09 2008. 03 30 PM IST
PTI
Mumbai: Aditya Birla Group firm Idea Cellular today said it has acquired about 41% stake in Spice Communications through open market and block trade transactions.
Idea Cellular has acquired 20 lakh equity shares, representing 0.29% in Spice Communications at an average market price of Rs74.81 each through open market transactions, the company said in a filing to the Bombay Stock Exchange.
Further, Idea Cellular through a block trade has acquired over 28.14 crore equity shares, representing 40.80%, at a price of Rs77.30 per piece, it added.
However, acquisition of these shares has not been completed and are held in separate escrow accounts. The acquirers of these shares would get the shares after fulfilling all its obligations under the SEBI Regulations, the filing added.
Earlier on June 25, Idea Cellular, the fifth-largest mobile operator in terms of subscribers, had said it would acquire 40.8% stake in B K Modi-owned Spice group for Rs2,716 crore.
The Aditya Birla group firm has also 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.
The open offer would start on August 22, and would close on September 11.
The Idea-Spice deal would catapult Idea Cellular’s market share to 11.1% and more importantly would get the crucial spectrum on 900 Mhz band.
Shares of Idea Cellular were trading at Rs87.35, up 1.93%, while Spice Communications was quoted up 0.48% at Rs73.90.
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First Published: Wed, Jul 09 2008. 03 30 PM IST