Stocks

Idea Cellular tanks 9.6% on valuation concerns

PTI Mumbai | Updated on January 15, 2018

Idea Cellular slumped 9.6 per cent as traders said the implied deal price in a planned merger with Vodafone PLC's Indian operations under-valued the company shares.

Although traders had initially reacted positively to the news, doubts about Idea's valuations after the merger sent shares downward.

Idea Cellular Ltd fell as much as 14.57 per cent, reversing earlier gains of 14.25 per cent, after the telecom services provider said it would merge with Vodafone Plc's Indian operations.

Idea Cellular informed the bourses that its board has approved the “scheme of amalgamation of Vodafone India Limited (VIL) and its wholly owned subsidiary Vodafone Mobile Services Ltd (VMSL) with the company''.

“The implied enterprise value is Rs 82,800 crore ($12.4 billion) for Vodafone India and Rs 72,200 crore ($10.8 billion) for Idea,” a joint statement by the companies said.

After completion of the merger, Vodafone will own 45.1 per cent of the combined company, Idea will have 26 per cent stake while the rest will be owned by public shareholders.

Published on March 20, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

null
This article is closed for comments.
Please Email the Editor

You May Also Like