Aditya Birla Telecom (ABTL), a subsidiary of Idea Cellular has divested 20 percent stake for $640 million to Providence Equity Partners. Idea Cellular has informed the BSE of the same. The comapny will issue compulsarily convertible preference shares to a subsidiary of Providence Equity Partners. These shares will be converted into 20 percent of equity share capital of ABTL post dilution. The deal is subject to regulatory approvals, including that of the Foreign Exchange Promotion Board. Providence had also invested $400 million in Idea Cellular pre-IPO in 2006.

The Hindu reports that Idea plans to list ABTL in the medium term; ABTL owns a telecom license for the Bihar service area, and the funds will be used to launch telecom services in the Bihar over the next 3-4 months under the “Idea” brand, reports Reuters. There are currently six other telecom operators operational in that circle.