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Idea Cellular’s proposed merger with Vodafone India is expected to be completed in Q2 of 2018
India’s Idea Cellular plans to raise an additional $1.1 billion in equity in the run up to its proposed merger with Vodafone India. A total of $425 million will be made through a preferential allotment to the Aditya Birla Group.
The Aditya Birla Group will increase its stake in Idea cellular from 42% to 47%, on a fully diluted basis after the preferential allotment. The group could increase its stake still further in the coming weeks.
As yet, Idea Cellular has not specified how it will raise the remaining funds.
The funds will be used to strengthen Idea Cellular’s balance sheet before it is merged with Vodafone India in a deal that is expected to complete later in 2018.
Once the merger completes later in the year, Vodafone Group will own approximately 47% of the newly formed entity, while the Aditya Birla Group will own 26%.
Vodafone India has recently appointed a new chief financial officer ahead of its proposed merger with Idea Cellular. Manish Dawar took the reins at Vodafone India with effect of 1st January 2018 and is expected to be the CFO for the newly formed entity when the two companies merge.
