Providence to sell 3.3% stake in Idea Cellular for $190 million
The lower end of the range is a 7% discount to Idea`s closing price of 114.55 rupees on the National Stock Exchange.
A subsidiary of Providence Equity Partners is selling its 3.3% stake in India`s third-biggest mobile phone carrier Idea Cellular Ltd for at least $190 million, according to a deal term sheet seen by Reuters on Monday.
The Providence unit, P5 Asia Investments (Mauritius) Ltd, will sell about 120 million shares in the mobile carrier on Tuesday in a price range of 106.5 rupees ($1.60) to 114.55 rupees a share, the term sheet showed.
The lower end of the range is a 7% discount to Idea`s closing price of 114.55 rupees on the National Stock Exchange on Monday and would value the 3.3% stake at nearly $192 million.
Idea, part of the Aditya Birla conglomerate and about 20% owned by Malaysia`s Axiata, is in talks over a merger with Vodafone`s Indian subsidiary, potentially creating the country`s biggest phone carrier.
Idea shares have surged nearly 47% since the two sides confirmed merger talks on Jan. 30.