Birla group owned, Idea Cellular announced that they will be taking over Spice Communications by acquiring 40.8% stake at Rs. 77.30/share from the Spice Group. The power hungry Idea will also team up with Telekom Malaysia International to take 20% more stake by offering an open price of Rs. 77.30/share to existing shareholders.
Advantages to Idea after the takeover are that:
– They will gain a direct entry in regions of Punjab and Karnataka, which account for 11% of India’s total wireless subscribers.
– 44 lakh customers in their pocket.
The deal is expected to close by the end of this year.