Two US private equity firms, KKR and Blackstone, have reportedly made offers for an 8% stake in Indian mobile operator Idea Cellular.
Singapore-owned investment firm Temasek is also considering investing in an Indian telco although it remains unclear…
Two US private equity firms, KKR and Blackstone, have reportedly made offers for an 8% stake in Indian mobile operator Idea Cellular.
Singapore-owned investment firm Temasek is also considering investing in an Indian telco although it remains unclear whether the company could be Idea, according to the Business Standard citing an investment banker familiar with the developments.
Blackstone and KKR declined to comment while the other parties were not immediately available for comment.
Idea is the fourth-largest mobile operator in a 12 player market and recently paid US$1.7bn for 900 MHz and 1,800 MHz frequencies in 11 circles.
Listed in India, Idea currently has a market cap of Rs457.6bn (US$7.6bn), valuing an 8% stake at around US$608m. Blackstone and KKR have reportedly put in bids “at a decent premium to the prevailing stock price,” the banker said.
The operator’s main investors include Indian conglomerate Aditya Birla Group, with a 46% stake, Malaysian giant Axiata, which owns a 20% stake, and PE firm Providence Equity, which holds 10%.
For the quarter to 31 December 2013, Idea’s standalone revenue grew by 17.8% year-on-year to Rs66.1bn (US$1.1bn).
Last year, market leader Bharti Airtel welcomed a new investor among its shareholders after Qatar Foundation Endowment bought a 5% stake for US$1.26bn.
