Idea formally announces stake acquisition deal with Spice

Idea formally announces stake acquisition deal with Spice

TT Bureau

Idea Cellular formally announced that it will buy out 40.8 percent stake of Spice Communications with the ultimate aim to merge the company into its fold. The two parties have agreed to a share price of Rs.77.3 per share of Spice.

The development was a foregone conclusion as recent reports suggested that all the parties concerned with the deal including Spice’ partner in the JV, Telekom Malaysia had reached an agreement. Telekom Malaysia has been reportedly offered upto 15 percent stake in the merged entity.

Idea also said that the deal will involve share swap wherein Spice shareholders would get 49 Idea shares for every 100 Spice shares held.