There have been reports on the Birla group selling stake in Idea. CNBC TV18 learns that it is not the Birla group that is seeking a way out but another large investor, Mauritius-based Axiata that is exploring exit opportunities. CNBC-TV18’s Kritika Saxena reports on the exclusive story as to who are the players that Axiata is talking to and gives an update on the runaway bride MTN's plans for India.
Banking sources said that Axiata is in an exploratory discussion to sell stake in Idea. It is not the Birla Group that is looking at selling of stake entirely in Idea. In fact, Axiata holds around 19.8% stake in Idea through TMI Mauritius and TMI India.
There are three players that are in exploratory discussions with Idea. There were some talks of MTN eying Idea. However, Axiata has been talking to MTN, AT&T as well as France Telecom to explore a possible stake sale.
Sources say, if at all a stake sale has to go through, the Birla Group has to give its nod. A certain amount of conflict can be seen as Birla’s are not looking at selling Idea entirely. If at all Axiata group wants to go ahead with the stake sale, it may have to explore the possibility of selling through the SPV route to avoid any kind of a takeover conflict.
According to sources, MTN has been looking out for other prospects as well. MTN would not open to just acquiring a part stake in Idea, but would look at complete buyout. Idea is not really the only target on their radar as they are talking to two-three other firms. In fact, sources say that they have appointed Bank of America to look at prospective company acquisition target.
As per the agreement signed between Axiata and Idea, the shareholding of Axiata in Idea Cellular is required to remain at least up to 14.9%. If Axiata goes ahead and sells some kind of stake, the shareholding agreement will be revised. Idea, however, has denied this particular story.
DEEPAK KUMAR
PGDM
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