"IDEA ADDS SPICE"

HOW DOES THE DEAL CHANGE THE TELECOM LANDSCAPE?

India will now have 11 telecom operators instead of 12 & the pecking order will change. Idea set to become the fifth-largest operator with over 31 million users. It is now just 5 million subscribers away from BSNL

WHAT DOES IT MEAN FOR IDEA CELLULAR?

AV Birla Group co gets a foothold in Punjab and Karnataka, 4.4 million subscribers, a strategic investor in Telekom Malaysia and a net income of Rs 4,500 crore.

Idea turns a debt-free company WHAT HAVE MODIS AND SPICE SHAREHOLDERS GAINED?

Modis made a cool Rs 2,720 crore by selling stake in the loss-making venture. This includes a non-compete fee of Rs 544 crore. Spice shareholders get 49 shares in Idea for every 100 shares held

HOW DOES TELEKOM MALAYSIA INTERNATIONAL BENEFIT?

It becomes a strategic investor in the 5th-largest operator in the world’s fastest-growing telecom market. TMI has 44 m users across 10 countries; Idea adds 31m to that. TMI will have one member on the new Idea board

DEAL DYNAMICS

STEP 1
Idea to acquire the Modis’ 40.8% stake in Spice

STEP 2
Idea to make 20%open offer for Spice jointly with TM

STEP 3
Idea to merge Spice Comms with itself

STEP 4
TM to buy 14.99% in merged co via preferential issue