Aditya Birla to buy 15% in Idea
Aditya Birla Nuvo's board has approved the acquisition of 15 per cent in Idea Cellular Ltd for Rs 13.73 billion.india Updated: Apr 11, 2006 11:21 IST
AV Birla Group appears to be executing plans to acquire Tatas' stake in Idea Cellular, a Joint Venture between the two, with one of Birla group's company raising its stake in Idea by 15 per cent.
Aditya Birla Nuvo Ltd (ABNL), an AV Birla Group Company, has announced acquisition of 15 per cent stake in Idea Cellular for Rs 1,373 crore. Similar process may be followed by other subsidiaries of AV Birla Group.
This step could be an indicator towards resolution of months long bitter battle between Tatas and Birlas over stake in Idea Cellular.
According to sources, going by Maxis Telecom's offer Tatas could get up to Rs 4,400 crore for their share in Idea Cellular.
Tatas hold over 48 per cent equity in Idea and has given an offer to Birlas to match the value being offered by Malaysian Telecom company Maxis.
The ABNL Board, which met here, authorised the company to acquire, either by itself or through its subsidiaries, 33.89 crore equity shares of Idea Cellular, the company informed the Bombay Stock Exchange.
With this acquisition ABNL's stake in Idea would go upto 35.74 per cent from the current level of 20.74 per cent.
Tata Group Chairman Ratan Tata, had said last week that it was for Birlas to match the offer of Maxis Telecom and had indicated that they (Birlas) were willing to match the offer.