Idea acquires over 281 million shares in Spice for Rs2,176 crore
08 Jul 2008
Mumbai: Aditya Birla Group firm Idea Cellular has acquired around 281.5 million shares of Spice Communications at Rs77.30 each, for a total of Rs2,175.91 crore, in a block deal on the Bombay Stock Exchange.
Idea Cellular, India's fifth-largest mobile phone operator in terms of subscribers, bought 28,14,89,313 shares of Spice Communications, at a traded price of Rs77.30, as per data available with the BSE.
Idea Cellular had, on June 25, said it would acquire 40.8 per cent stake in B K Modi-owned Spice Group for Rs2,716 crore. The company also made an open offer to the shareholders of Spice Communications to acquire an additional 20 per cent stake in the teleco for about Rs1,066.63 crore.
The open offer would start on August 22, and would close on September 11.
An Idea-Spice combine would have a market share of 11.1 per cent and spectrum on 900 mHz band. The acquisition would also give idea two existing circles of Punjab and Karnataka with a subscriber base of 4.4 million.