Issue: 0827| Wednesday, July 02, 2008

Idea Cellular buys 40% stake in Spice Communications

Spice Communications' promoter group company, MCorpGlobal Communications Pvt Ltd has signed a share purchase agreement with Idea Cellular, whereby the Aditya Birla group firm will acquire the promoters 40.8% stake (281,489,350 shares of Rs10 each) at Rs77.30 per share for Rs 2,176 crore ($518 million). Besides, Modi will also get about Rs 544 crore in non-compete fee. Concurrently, Idea Cellular will merge Spice with itself. As part of the deal, Telekom Malaysia, which owned 39.2 per cent in Spice Comm, will be getting about 20 per cent stake in Idea Cellular including a 14.99 per cent stake that will be given on a preferential allotment at Rs 156.96 a share.

Idea-Spice Deal: Valuation Metrics

US$ Millions

Idea

Spice

Idea Spice

Enterprise Value (EV)

7581

1170

8751

%

87%

13%

100%

Revenues

1604

248

1852

%

87%

13%

100%

EBITDA

540

61

601

%

90%

10%

100%

EBITDA Margin

34%

25%

32%

PAT

248

(18)

230

%

108%

(8%)

100%

PAT Margin

15%

(7%)

12%

Capex

1214

216

1430

Subscribers Base (Million)

24

4

28

 
Email this
Words of Wisdom
Know Us
It's not enough that we do our best; sometimes we have to do what's required.
To know more about Epitome Global Services visit us at:
Sir Winston Churchill http://www.epitomeglobalservices.com/ 
 NEWS FOR ASSET MANAGERS

Pension Fund Allocation to Alternatives rises 40%
Sovereign funds invest in London's HFs
MARKET NEWS
Oil Market on a feverish high
Pensions ban from commodity investment won’t work
Structured Products provide investors capital preservation
EMERGING MARKET 
     DEVELOPMENT
BRIC countries viable for long-term
HF clones to flourish in Asia
U.S. wealth managers expand overseas
PE AND M&A ACTION IN INDIA
Frontline Strategy’s Fund Acquires 26% in Shriram SEPL Composites
PE firms stack USD 2 bn for maritime logistics
Idea Cellular buys 40% stake in Spice Communications
GMR Infra acquires 50% in InterGen N.V. for $1.1 Billion
 
 
| Home | Archive | Subscription | Unsubscribe | Feedback | Forward| Back
 
 
Disclaimer:
Information provided in this newsletter is from sources believed by Epitome Global Services to be accurate and reliable. This newsletter is intended to reach only the addressee of this email. If you are not the intended recipient, you are not authorized to read, print, retain, copy, disseminate, distribute, or use this message or any part thereof. If you receive this message in error, please notify us immediately and delete all copies of this message. Epitome Global Services makes no representations and disclaims all express, implied, and statutory warranties of any kind to any user and/or any third party including warranties as to accuracy, timeliness, completeness, merchantability, or fitness of information for any particular purpose. In no event shall Epitome Global Services be liable for any direct, indirect, incidental, punitive, or consequential damages of any kind whatsoever arising from the contents of this website / newsletter, or the use thereof or for any actions taken in reliance thereon. Users are responsible for seeking the advice of professionals, as appropriate, regarding the information, opinions, advice or content available at this website or in the newsletter.
  
Copyright@ 2007 Epitome Global Services.All Rights Reserved.