US fund buys 16% in Idea
US-based private equity firm Providence Equity Partners has bought a 16 per cent stake in Idea Cellular Ltd, the fifth-ranked Indian mobile services firm, for $400 million.
Idea Cellular is 98.3 per cent owned by the diversified Aditya Birla conglomerate, which also has interests in cement, financial services and commodities. In April, the group had said it would sell about 33 per cent in Idea.
No official from the group was available for comment. Providence could not be immediately contacted.
Idea Cellular provides mobile services based on the GSM platform to more than 10 million customers.
Aditya Birla had purchased the entire 48.12 per cent held by another Indian business house – the Tatas – in Idea for Rs 44.06 billion, valuing Idea at just below $2 billion.
India, Asia’s fourth-largest economy, has seen a spate of telecoms deals over the past two years in part due to liberalised policies and also on expectations for soaring growth.
The booming wireless services market, which has more than 125 million users, is attracting over 5 million new customers each month thanks to rock bottom local mobile call rates.
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