PE Providence to Exit Idea, Sell Residual 3.3%
Mumbai: Private equity firm Providence is scheduled to sell a 3.3% stake it holds in Idea Cellular through a block deal on Tuesday, a term sheet showed. The deal will mark the PE firm’s complete exit from the telecom company.
Idea Cellular’s shares have gained almost 53% since the beginning of 2017 to close at .₹ 114.60 on Monday. Based on Monday’s price, a 3.3% stake is worth about .₹ 1,362 crore.
Citigroup is the sole bookrunner for the sale, which is priced between .₹ 106.50 and .₹ 114.55 a share. The term sheet puts the value of the deal at $190 million (.`1,268 crore).
Providence, through its investment arm P5 Asia Investment (Mauritius), acquired 15% stake in Idea in 2006 for around .₹ 1,800 crore and has been selling the stake in batches over the years. In June 2016, it offloaded a 3.47% stake for .₹ 1,383 crore.
Vodafone and the Aditya Birla Group that owns Idea Cellular said on January 30 that they were in talks for an all-stock merger. The proposed deal will create the country’s largest telco, helping it take on the threat posed by Reliance Jio Infocomm and current leader Bharti Airtel. The talks involve Vodafone buying fresh shares in Idea and deconsolidating its India unit.