The conflicting reports have now been put to rest. As earlier reported by CS, Idea has finalized the acquisition of BK Modi’s 40.8% stake in Spice communications for Rs 2,200 crore. The final deal pegs the value of each share between Rs 77 and Rs 78, a premium of 45% to Monday’s price of Rs 53.20 reports ET. This brings the overall valuation of Spice to Rs 5,347 crore. Telekom Malaysia is expected to get a proportionate share in the new entity, however, an official announcement expected soon will shed light on the share of transfer of assets owned by Spice in Cellebrum.

SEE ALSO: Spice - Idea Merge, BK Modi To Exit Completely: Reports

Spice has been in poor financial condition and this deal is a direct outcome of the DoT denying Spice a pan-India license. Spice, which currently has 4 million subscribers in Karnataka and Punjab, had proposed a stay in the issue of licenses to new entrants, stating that they would get a first mover advantage in roll-out, bringing Spice to a state of complete collapse. The merger puts it in the hands of the deep pocketed AV Birla Group which currently holds 98.3% of Idea.