In preliminary merger talks with Vodafone India: Idea Cellular to BSE

Idea Cellular, the country’s third largest telecom operator by users, said that it has been in preliminary discussions with Vodafone Group for a potential merger, replying to a clarification sought by the stock exchanges on ET story “Merger May be the Best Idea for Vodafone, Sirji” published on Monday.

“The company constantly evaluates various opportunities for enhancing the stakeholders’ value. As a part of the exercise, the company has been in preliminary discussions with Vodafone, In view of the fact that the discussion is at the preliminary stage, the Company is not in a position to share any further details,” the company said in a filing.

The Aditya Birla Group company added, “it is important to mention that the fundamental premise of preliminary discussion is based on equal rights between Aditya Birla Group and Vodafone in the combined entity.”

It also cautioned that there is no certainty that the discussion with them will result in any agreement.

“The company will inform the stock exchanges as an when the Board takes any decision in this regard,” it added.

Earlier today, Vodafone Group also confirmed its discussions with the Aditya Birla Group about an all share merger of Vodafone India and Idea Cellular. It said that the discussions exclude Vodafone’s 42% stake in Indus Towers.

Shares of Aditya Birla group’s Idea Cellular surged nearly 27% at 2:00 pm on Monday after the country’s second-largest telco Vodafone India confirmed talks with Idea for all-share merger.

Following the announcement, the company rose 27% to hit a high of Rs 100.50 on the Bombay Stock Exchange (BSE).