Providence Selling Stake In Idea Cellular For $190 Million

Mumbai: A subsidiary of Providence Equity Partners is selling its 3.3 percent stake in India's third-biggest mobile phone carrier Idea Cellular Ltd for at least $190 million, according to a deal term sheet seen by Reuters on Monday.

The Providence unit, P5 Asia Investments (Mauritius) Ltd, will sell about 120 million shares in the mobile carrier on Tuesday in a price range of Rs 106.5 to Rs 114.55 a share, the term sheet showed.

The lower end of the range is a 7 percent discount to Idea's closing price of Rs 114.55 on the National Stock Exchange on Monday and would value the 3.3 percent stake at nearly $192 million.

Idea, part of the Aditya Birla conglomerate and about 20-percent owned by Malaysia's Axiata, is in talks over a merger with Vodafone's Indian subsidiary, potentially creating the country's biggest phone carrier.

Idea shares have surged nearly 47 percent since the two sides confirmed merger talks on January 30.