Professional Documents
Culture Documents
Idea Price
Idea Price
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ABOUT THE COMPANY
•
•Spice Telecom is the brand name of Spice
Communications
•
•Spice Telecom is currently operating in the states
of Punjab and Karnataka
•
•Spice Communications Limited was promoted by Dilip
Modi of Modi Wellvest Private Limited
•
•Telekom Malaysia Berhad owns 39.20% through TMI India
Limited.
•
•Spice’s cellular services have a customer base of over 1.8
million as at January 2006 in Punjab and Karnataka
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DEAL CHRONOL0GY
Idea
% open offer to Spice Shareholders gets
= 60.8%
@Rs.77.30 stake in Spice along w
per share
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ACCESS TO CRUCIAL 900 MHz BAND
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TMI AS AN STRATEGIC INVESTOR
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STRONG CASH INFUSION WILL LEAD TO BETTER BALANCE
SHEET
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DILUTION OF EQUITY
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REASONS FOR SPICE TO MERGE
•
•
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FINANCIALS
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POST MERGER DYNAMICS
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POST MERGER PROBLEM
•LOWER EPS- Since Idea’s equity will see a 23% diliution this
will lead to a lower EPS.
•MARGIN PRESSURE
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THANK
YOU
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