Finally the India’s fifth largest telecom player – Idea’s stake deal seems to be coming to end after the decision taken by Birla group. It was long tussle betwwen Tata and Birla to get their demads approved before the deal and it seemed very much possible that one of them will have to back out from this deal while other buying its wager (sounds more suitable). And the most prominent chances were that Tata will be buying the Birla’s stake and till yestreday, evone was waiting for the Tata’s final offer to buy that. But today, it was a surprize when Birlas made an irresistable offer to Tata for buying its portion for Rs 4,406 crore at Rs 40.50 a share, taking his ownership in Idea Cellular to a dominant 98% and Tatas agreed. May be this was because Tata wud have started feeling loosing its image after long process going in this deal and its lingering progress. Therefore, it wont had been difficult for them to take this decision.
Birlas to buy 48.12% Tata stake in Idea
The prospect of an alliance between the country’s two oldest industrial groups was always fascinating. But unfortunately it was an idea whose time had not yet come. On Monday, the Tatas and the AV Birla group agreed to a mutual divorce in their telecom joint venture-Idea.
Kumar Mangalam Birla agreed to buy out his JV partner Tata’s stake for Rs 4,406 crore at Rs 40.50 a share, taking his ownership in Idea Cellular to a dominant 98%.
Last Wednesday, the Tatas sent a proposal to the Birlas offering to sell their Idea shareholding; which the Birla Management Council immediately referred to the group’s investment bankers to evaluate.