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Birla Group raises stake in Idea Cellular to 50.15%
Birla Group has raised its stake in Idea Cellular to 50.15% after it bought Cingular Wireless's stake for a consideration of $150 million.
Aditya Birla Group on Wednesday raised its stake in Idea Cellular to 50.15 per cent after it bought Cingular Wireless's stake for a consideration of $150 million (about Rs 650 crore).
In a notice to Bombay Stock Exchange, Aditya Birla Group's flagship company Indian Rayon & Industries Ltd said it had acquired 16.45 per cent stake in Idea Cellular for a price of 150 million dollars.
The 16.45 per cent of Idea's paid-up equity, that is 371.8 million equity shares which were earlier held by US-based Cingular Wireless have now been acquired by Indian Rayon, it said in the notice to the BSE.
This acquisition has raised the company's shareholding in Idea to 20.74 per cent and that of the Aditya Birla group to 50.15 per cent, it added.
"We and our partners (Tatas) aim that Idea will be known as the company that sets operational and service standards which become the benchmark for the industry," Birla's nominee on the Board of Idea Cellular Sanjeev Aga said.
Tatas could not be contacted despite repeated attempts.
About two months ago, Tatas and AV Birla group had announced to buy out their foreign partner Cingular Wireless from joint venture Idea Cellular for about Rs 1,300 crore.
Both Tatas and AV Birla Group were supposed to share 32.91 per cent stake of Cingular Wireless equally. Aga said although technically Birla have majority stake in Idea Cellular but management control would be shared equally.
