Besides, Idea will also make an open offer, along with Telekom Malaysia, to acquire a further 20 per cent stake in Spice for over Rs. 1,000 crore, while the Malaysian firm would be alloted over 46.4 crore Idea shares on preferential basis for about Rs. 7,300 crore.
Idea will also pay Rs. 543.97 crore as a non-compete fee to Mcorpglobal.
Idea, along with Telekom Malaysia and its subsidiaries as persons acting in concert (PACs), will also make an open offer for an additional 20 per cent stake in Spice.
Idea said that the merger of Spice with itself would be based on an exchange ratio of 49 Idea shares for every 100 shares of Spice, which would be subject to all regulatory approvals, including the Department of Telecommunications.
Idea Cellular to acquire Spice Communication Thursday, July 17, 2008 The company will also pay approximately Rs 544 crore to the Spice group as non-compete fee. Idea and Telekom Malaysia International along with their affiliates will make an open offer for an additional 20 percent stake in Spice. The open offer will be made at a price of Rs 77.30 per share. The boards of Idea and Spice have approved the merger of Spice into Idea. Spice shareholders will get 49 Idea shares for 100 shares in Spice. Idea will make a preferential allotment to Telekom Malaysia of 464.73 million equity shares at a price of Rs 156.96 per Idea share representing 14.99 percent of Idea’s equity capital post allotment. With this acquisition, Idea gains entry into the wireless markets in Punjab and Karnataka, which account for 11 percent in India’s total wireless market. Spice has...