Tata, Birla to buy Cingular in Idea for Rs 1,300 crore

Posted: Sunday, Jul 31, 2005 at 0112 hrs IST
Updated: Sunday, Jul 31, 2005 at 0112 hrs IST

Font Size

Feedback

Discuss

Discount UK Shopping

Mumbai, July 30: In another mega deal in the telecom space, the Tatas and the AV Birla group are buying out 16.45% each of their JV partner Cingular Wireless’ 32.91% stake in Idea Cellular for Rs 1,300 crore ($300 million), according to Sanjeev Aga, a Birla-group backed director on the Idea Cellular board.

Idea is India’s fifth largest mobile service provider with a subscriber base of 5.7 million. Cingular, which had acquired the stake as a legacy following its merger with AT&T had expressed its desire to exit Idea more than a year ago.

Idea Cellular was created after a merger between Tata group’s GSM business and Birla AT&T. Before the deal, Tatas, Birlas and Cingular each held one-third equity in Idea. After the acquisition, the AV Birla group will hold just over 50% in the venture and the Tatas, a little less than 49%.

There is still considerable speculation over who, between the Tatas and Birlas, will eventually control Idea Cellular. While the AV Birla group only sees itself as an investor in Idea, Tatas already have their own mobile service under the Tata Indicom brand that uses CDMA technology.

Sharing An Idea

• Birla to end up with over 50%, Tata just under 49%
• Deal allows Tata group bigger share of GSM pie
• Idea Cellular has 57 lakh subscribers
...

Post Comments

Comments: (Limit 3,000 characters)

Name		Message
Email ID
Subject

TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

I agree to the terms of use.