Idea to acquire significant stake in Spice Communications

Idea Cellular has announced that they are now acquiring a 40.8 percent stake in the Spice Communications.

The deal would be conducted through cash and stock as they aim to expand their services to take on market leaders Airtel.

Idea is controlled by billionaire Kumar Mangalam Birla and they are buying 281.5 million shares in Spice for Rs. 77.3 per share. The company would be giving Spice’s investors 49 Idea shares for every 100 stock they hold.

India is currently the second largest mobile market after china. The country is adding close to around 8 million new subscribers every month.