Mumbai, Jan 15: In one of the largest deal in the Indian telecom sector, Idea Cellular Ltd (Idea) today acquired a 100 per cent stake in Escotel Mobile Communications (EMCL) and Escorts Telecommunications Ltd (ETL) in an all cash deal. This transaction would bring six telecom circles, including Uttar Pradesh, Haryana and Kerala, and 8.25 lakh subscribers under idea's wings for which a share purchase agreement was signed with escorts and first pacific, which hold 100 per cent stake in EMCL and ETL.

Idea, in a statement, said the agreement was subject to all statutory approvals and would require consent of lender groups. However, the company has not disclosed the acquisition cost.
This acquisition would increase idea's subscriber base from 2.2 million to three million. The idea footprint will now cover 60 per cent of India's population, it added.

Idea cellular CEO Vikram Mehmi said, "The company has successful track record in mergers & acquisitions having itself being formed through a merger of Tata Cellular with Birla AT&T and subsequent acquisition of RPG Cellular's Madhya Pradesh circle.”
The expansion of footprint brings synergy and benefit of scale to both Idea and Escotel, thus adding value to customers, he added.

Sunil Mittal, chairman of Bharti Group, which was also in the fray, said, "their expectation was breaching our valuations".

Bureau Report