Birlas to acquire Tata's stake in Idea, ends feud

New Delhi, Apr 10 (UNI) The Aditya Birla group today said it would acquire the entire 48.14 per cent stake of Tata Group in Idea Cellular for Rs 4,406 crore bringing an end to months of feud between the two industrial houses and paving way for an Initial Public Offering (IPO) by the now Birla owned Idea Cellular.

The Aditya Birla group has accepted the offer made by Tata and will acquire its entire holding of 48.14 per cent in Idea cellular for a total consideration of Rs 4,406 crore, the group said.

While 15 per cent of the 48.14 per cent would be acquired by Aditya Birla Nuvo Ltd (ABNL), the balance stake would be acquired by Birla TMT Holdings Pvt Ltd, subject to necessary approvals.

Birla TMT Holdings, intends to place on the same terms, the equity acquired by it, to financial investors, thereby bringing the combined holdings of the Aditya Birla group companies to over 65 per cent.

At its Board meeting in Mumbai, ABNL has been authorised to acquire, by itself or through its subsidiaries, 338.90 million equity shares of Idea Cellular, the company informed the Bombay Stock Exchange.

With this acquisition ABNL's stake in Idea would go upto 35.74 per cent from the current level of 20.74 per cent.

With dispute between its two main shareholders coming to an end, industry sources say the now Birla group-owned Idea Cellular looks all set to hit the capital market with an initial public offering later this year.

Idea Cellular had earlier planned to come out with an IPO more than two years ago but was shelved due to differences between the two joint venture partners - Aditya Birla group and Tatas over the equity holding in the company.

The subsidiaries of Aditya Birla group, who hold equity in Idea Cellular, might hold their respective board meetings within a week to take a final decision in this regard.

UNI/RT SR PM1930