Idea offloads 8% to GLG Partners
Deal seen at $240 m; total stake sale now reaches 33%; another 10% may be divested via IPO
Aditya Birla group promoted Idea Cellular Ltd has offloaded about 8% stake to the UK-based asset management company GLG Partners. The development comes soon after the company offloaded 25% stake to Providence Equity Partners (15%), ChrysCapital, TA Associates and Citigroup (10%).
Sources said that going by the $120 million, which ChrysCapital paid for a 4% stake, Idea would have sold 8% stake to GLG Partners for around $240 million.
Aditya Birla Group’s officials were not available for comment. With the latest sale, Idea has offloaded a total of 33%, which it had indicated it would place with financial investors when it bought Tatas’ 48% for Rs 4,406 crore earlier this year. Sources said that Idea may divest another 10-15% through an initial public offering.
Idea’s valuation is estimated to be around Rs 10,000-12,000 crore.
Post acquisition of Tata’s stake, the Aditya Birla group held 98.3% stake in the company.
Global Reach
• The sale comes soon after the company offloaded 25% stake to Providence Equity Partners (15%), ChrysCapital, TA Associates and Citigroup (10%)
• Idea’s valuation is estimated
to be around Rs 10,000-12,000 crore
• Idea provides services in 11 circles and has a total subscriber base of 10.4 million. It ranks as the
fourth largest GSM cellular
service provider
The company needs funds to expand in the highly competitive telecom market, marked by declining tariff trends.
The company also needs to bring down its debt, currently pegged around $1 billion.
At present, Idea provides services in 11 circles and has a total subscriber base of 10.4 million. It ranks as the fourth largest GSM cellular service provider.
Earlier, this year, the AV Birla group picked up Tatas’ stake in the company because it identified telecom as focus area and maintained that the Tatas were neglecting the joint venture company as they were more focused to their CDMA venture, Tata Teleservices Ltd.
Idea, which at present is not present in the Mumbai circle, has been granted a letter of intent (LoI) by the department of telecommunications.
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