Providence buys 20% stake in Idea Cellular

This takes Providence's total investment in the Idea Cellular to $1.04 billion, which is the largest private equity investment in an Indian telecom service provider. The deal values ABTL at Rs 12, 800 crore.

ABTL is a Universal Access Service Licence (UASL) holder with permission to provide telecom services in the country, in the Bihar circles (comprising Bihar and Jharkhand states).

"This is the largest investment in an Indian telecom service provider as earlier Providence Equity had invested $400 million in exchange for an equity of 12.5 per cent. ABTL will use the funds for expansion activities like network rollout and ongoing operations, with the company very close to launching services in Bihar circle," Idea Cellular Managing Director Sanjeev Aga said.

ABTL, which was allocated spectrum for 3G rollout in the Bihar circle, was looking at rolling out the services in the next 3-4 months.

ABTL may be listed on the stock markets at an "appropriate time," Aga said. ABTL owns Idea's 16 per cent stake in Indus Towers Ltd., a joint venture with Bharti and Vodafone's Indian unit, Vodafone Essar Ltd.

After offloading the 20 per cent stake