(Updates facebook/" target="_blank">shares, adds details)** Telecom services provider Idea Cellular Ltd reverses course to fall as much as 14.57 pct to 92.35 rupees, lowest since Jan 30** Stock top pct loser on broader NSE index** Shares rose as much as 14.25 pct immediately after news of amalgamation of Vodafone India and its unit Vodafone Mobile Services Ltd with co** But traders, after factoring in the terms of the deal and the shareholding of both companies, expressed concerns about how the merged entity would value Idea's stake** Around 140 mln Idea shares change hands, more than 5 times the 30-day average volume** Up to Friday's close, stock had risen about 45.8 pct this year
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The Telegraph reported earlier this month that Vodafone and Idea were nearing a deal, citing unidentified people. Aditya Birla and Vodafone would have equal rights in the new company, Idea said in a January exchange filing. Vodafone and Idea are weighing options on excess airwaves—including selling or sharing them, people with knowledge of the matter said last month. 2 provider, Vodafone India, and its third largest, Idea, controlled by Aditya Birla Group. Photo: Priyanka Parashar/MintMumbai: Vodafone Group Plc is nearing an initial agreement to merge its Indian operations with Idea Cellular Ltd, in a deal that would create the largest telecom company in one of the world's most competitive markets, people with knowledge of the matter said.
Idea Cellular has equity stake in Indus Towers, which is a joint venture between Idea, Bharti Airtel and Vodafone India. The price sought by Idea is at about 19% premium to its Wednesday's closing price of Rs 112.9. Debt burdenReportedly, Idea Cellular is also looking to monetise its telecom tower assets in order to raise cash, pare debt and boost valuations ahead of the merger. The new capital that Vodafone brings in may be used to pare the substantial debt that Idea has on its books. The two operators complement each other, with Vodafone having strong presence in urban areas and Idea being an established player in the hinterland.
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Vodafone India, Idea Cellular nearing initial agreement in merger deal
The Telegraph reported earlier this month that Vodafone and Idea were nearing a deal, citing unidentified people. Aditya Birla and Vodafone would have equal rights in the new company, Idea said in a January exchange filing. Vodafone and Idea are weighing options on excess airwaves—including selling or sharing them, people with knowledge of the matter said last month. 2 provider, Vodafone India, and its third largest, Idea, controlled by Aditya Birla Group. Photo: Priyanka Parashar/MintMumbai: Vodafone Group Plc is nearing an initial agreement to merge its Indian operations with Idea Cellular Ltd, in a deal that would create the largest telecom company in one of the world's most competitive markets, people with knowledge of the matter said.
Idea Cellular seeks higher valuation at Rs 134/share as Vodafone merger talks enter last lap
Idea Cellular has equity stake in Indus Towers, which is a joint venture between Idea, Bharti Airtel and Vodafone India. The price sought by Idea is at about 19% premium to its Wednesday's closing price of Rs 112.9. Debt burdenReportedly, Idea Cellular is also looking to monetise its telecom tower assets in order to raise cash, pare debt and boost valuations ahead of the merger. The new capital that Vodafone brings in may be used to pare the substantial debt that Idea has on its books. The two operators complement each other, with Vodafone having strong presence in urban areas and Idea being an established player in the hinterland.
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collected by :Jack Luxor
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