Mauritius-based investment firm ChrysCapital has sold a 2.5% stake in Indian cellco Idea Cellular, TelecomFinance has confirmed.
About 83.5 million shares, which represent most of ChrysCapital’s total interest in Idea, were divested for Rs90 (US$2) a…
Mauritius-based investment firm ChrysCapital has sold a 2.5% stake in Indian cellco Idea Cellular, TelecomFinance has confirmed.
About 83.5 million shares, which represent most of ChrysCapital’s total interest in Idea, were divested for Rs90 (US$2) a share, or Rs7.51bn (US$170m), showed stock exchange data. On 28 July, Idea’s shares stood at an average of Rs90.36.
As of 30 June 2011, ChrysCapital held a 2.71% stake in the cellco, or 89.5 million shares, via its investment arm Monet.
About 41 million of the shares held by ChrysCapital have been sold to First State Asia Pacific Leader Fund.
Idea and ChrysCapital declined to comment. But a source confirmed that a large transaction had taken place and that it was encouraged by a recent increase in valuations on the stock markets.
At the same time, TelecomFinance understands that Providence Equity Partners, which is a major shareholder in Idea, does not intend to follow ChrysCapital’s move to cash in on the current high valuations of Indian telcos.
Earlier this month, rumours had suggested that Providence was considering selling its 9.99% stake. But a source close to the matter dismissed those reports.
