Idea Cellular to buy out Providence Equity Partners’ 16 per cent stake in Aditya Birla Telecom

Idea Cellular has reportedly offered Rs 40 billion to buy out Providence Equity Partners’ 16 per cent stake in the former’s subsidiary, Aditya Birla Telecom Limited (ABTL). Providence had made an investment of $420 million in ABTL in 2009 with a view to leverage the opportunities that were to result from a proposed initial public offering (IPO) by Indus Towers, in which ABTL holds a 16 per cent stake. However, the cancellation of the 122 2G licences by the Supreme Court in 2012 and the regulatory hurdles involved put the IPO on hold. Subsequently, the IPO did not take place as the company’s shareholders did not agree to it.

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