Providence Equity cellular bid approved

PROVIDENCE – The Indian government last week approved Providence-based private equity firm Providence Equity Partners’ bid for a 20-percent stake in Aditya Birla Telecom (ABTL), a unit of Idea Cellular, that country’s fifth-largest mobile operator.
The deal, given the nod by the Cabinet Committee on Economic Affairs (CCEA), is worth $640 million. ABTL said it will use the funds for network-expansion projects and ongoing activities. The company owns telecom licenses in the Eastern states of Jharkhand and Bihar.
The CCEA also approved Idea Cellular’s plan to transfer to ABTL its 16-percent holding in Indus Towers, a mobile-tower company set up as a joint venture with Indian telecom firms Bharti Airtel and Vodafone Essar. ABTL also holds 50,000 equity shares of Idea Cellular Towers Infrastructure Ltd.
Providence Equity Partners Inc. is a global private investment firm – based in Providence, with offices in Los Angeles, New York City, London, Hong Kong and New Delhi – that specializes in media, entertainment, communications and information companies. Since its founding in 1989, Providence Equity has made investments in more than 100 companies. Its equity commitments total about $21 billion. Additional information is available at www.provequity.com.