Providence Invests USD 640 million in Aditya Birla Telecom

The Board of Directors of Idea Cellular Ltd, on May 22, 2008, has taken note of the proposed issuance by Aditya Birla Telecom Ltd ("ABTL") (a wholly owned subsidiary of Idea Cellular Ltd) of compulsorily convertible preference shares for an aggregate sum of USD 640 million, to be converted into 20% of equity share capital of ABTL post dilution, to an affiliate of Providence Equity Partners, and has approved the transaction documents for this purpose.

The aforementioned investment is subject to the receipt of regulatory approvals, including the approval of the FIPB.

The Idea Cellular stock closed the day at Rs.107.35, down by Rs.4.40 or 3.94%. The stock hit an intraday high of Rs.111.90 and low of Rs.107.

The total traded quantity was 2935794 compared to 2 week average of 5848187.

Source : Equity Bulls

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