Idea Cellular Arm Gets $640 Million From Providence Equity

May 22, 2008 | by Sahad P V

Idea Cellular Ltd, the mobile cellular company owned by Adity Birla Group, has received another round of private equity investment from Providence Equity Partners. In an announcement to the Bombay Stock Exchange, Idea Cellular informed that Aditya Birla Telecom Ltd (ABTL), a wholly owned subsidiary of the Pune-headquartered company, has issued compulsorily convertible preference shares to the private equity fund for an aggregate sum of $640 million. DSP Merrill Lynch was the advisor in the transaction for Idea Cellular.
These shares would be converted into 20 per cent of equity share capital of ABTL post dilution, the announcement said. The deal values ABTL at $3.2 billion. The investment is subject to the receipt of regulatory approvals, including the approval of the FIPB, the release said.