Private Equity Invests in Indian Operator

The private equity firm, TA Associates says that it has take an unspecified - but significant minority stake in India's Idea Cellular. The Company's largest shareholder is the Aditya Birla Group. Terms of the transaction were not disclosed.

Idea is a leading wireless operator in India with over 10 million subscribers and operations in eleven of the country's major markets. The Company is among the top five cellular service providers in India by revenue, and among the top three within its current markets, providing service to 58 percent of India's total telephony market.

The Indian wireless market has experienced tremendous growth in this decade. Wireless subscribers in the country grew from three million in 2000, to 80 million by the end of 2005. According to Gartner, by the end of 2007, the country will have nearly 200 million wireless subscribers. India recently overtook China as the world's fastest growing wireless market, surging 80 percent over the past 12 months compared to 15 percent for China over that same period.

"Idea Cellular, as one of the fastest growing wireless carriers in the fastest growing wireless market in the world, is a good illustration of the type of private company, in an exciting growth industry, in which TA seeks to invest," said C. Kevin Landry, Chief Executive Officer of TA Associates. "This is TA's first foray into Asia and we are very pleased to bring our communications experience to bear in this market. We also look forward to working with the Aditya Birla Group, one of India's most prestigious multinational corporations, and our co-investors Providence Equity Partners and ChrysCapital."

This is TA's second investment in wireless communications in the last 12 months. In October 2005, TA led a US$746 million equity investment in the USA based, MetroPCS."

Posted to the site on 30th October 2006