Providence to sell 3.3% of Idea Cellular stake in block deal

Deal would mark the complete exit of Providence from the telecom firm

US-based private equity (PE) player Providence Equity Partners will sell 3.3 per cent of its stake in Indian telecom provider Idea Cellular through a block deal. The block deal would mark the complete exit of Providence from Idea Cellular.

According to official press release, the shares will be offered in the range of Rs 106.5 to Rs 114.55 apiece. At the lower price range, the discount offered would be seven per cent to Monday's close price and the total value of the block trade would be Rs 1,278 crore.

The proposed block deal comes at a time when the telecom provider is in talks with its peer Vodafone on a possible merger. Shares of Idea have surged nearly 65 per cent since its low in January.

Providence had bought 15 per cent in Idea Cellular in 2006 for around Rs 1,800 crore through its investment arm, P5 Asia Investment (Mauritius). Since then, it has diluted its stake in tranches. The last tranche was in June 2016, when the PE investor sold 3.3 per cent stake through a block deal worth Rs 1,375 crore.

The deal would happen on Tuesday and Citi Group is the sole book running manager for the issue.