Published on 20/03/2017 11:51:03 AM | Source: Dion Global Solutions Ltd.
Idea Cellular tanks 9% on merger deal with Vodafone
Shares of Idea Cellular, declined over 9 per cent in early trade on the Bombay Stock Exchange after the company said its board has approved the scheme of amalgamation of Vodafone India and its wholly owned subsidiary Vodafone Mobile Services with the company. At present, Vodafone India is the country’s second largest operator by users and Idea Cellular the third largest operator. Vodafone India will own 45.1 per cent stake in the merged entity after transferring about 4.9 per cent to the promoters of Idea and their affiliates for Rs 3,874 crore in cash, Idea said.
Promoters of Idea will hold 26 per cent stake in the company and the remaining will be held by the public. Reacting to the news, shares of company declined as much as 9.64 per cent to Rs 97.50 apiece on the Bombay Stock Exchange. In a similar fashion, stocks of company slipped 9.20 per cent to Rs 98.15 apiece on the National Stock Exchange. Meanwhile, the broader benchmark BSE Sensex was trading at 29,487.24, down 161.75 points, or 0.54 per cent, at 11:40 hours.