Providence exits Idea at discount ahead of Vodafone merger

US-based private equity firm Providence Equity Partners has sold its entire 3.3 per cent equity stake in Idea Cellular in a block deal for about

Rs 13.25 billion, ahead of the telecom service provider’s impending merger with rival Vodafone India. The stake sale, which marks Providence’s complete exit from Idea Cellular, was at a discount of 3.6-3.8 per cent to the closing price on February 27, 2017. Providence sold 120 million shares of Idea at Rs 110.30-Rs 110.45 per share. Providence Equity Partners had bought a 15 per cent equity stake in Idea back in 2006 for Rs 18 billion. It has since then sold the stake in parts, booking profit in phases. It last sold a 3.3 per cent stake in June 2016 for Rs 13.75 billion.