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21 December 2004, Singapore – LAWFUEL – First with law news – The Lo…

21 December 2004, Singapore – LAWFUEL – First with law news – The Los Angeles and Singapore offices of Jones Day and P&A Law Offices, India recently advised a consortium comprising Singapore Technologies Telemedia (“ST Telemedia”) and TM International, the international investment arm of Telekom Malaysia, on the acquisition of a 47.7% stake in IDEA Cellular (“IDEA”) for approximately US$390 million.

The consortium will acquire the entire stake of Cingular Wireless, and simultaneously infuse additional capital into IDEA. Upon completion of the transaction, the consortium will become the single largest shareholder of IDEA with ST Telemedia holding 60% and TM International 40% of the 47.7% shareholding. The consortium has also entered into option agreements with IDEA’s Indian shareholders, Tata Industries and the Aditya Birla Group, enabling Tata Industries and the Aditya Birla Group to sell, and the consortium to purchase, their shares in IDEA at a future date.

The transaction is anticipated to be completed in the first quarter of 2005. The proposed investment is consistent with the strategic objectives of both ST Telemedia and TM International: to become significant wireless players in the Asian markets; and to participate in the growing cellular market in India.

Jai Pathak, partner in the Los Angeles office, Adam Summerly from the Singapore office and Harish Narasappa from P&A Law Offices, India led a team of lawyers in Singapore and India advising on all aspects of the transaction.

Commenting on Jones Day’s role in the project, partner Jai Pathak said “We are very honored to have been able to participate in this significant transaction with two of Asia’s leading global communication companies. This is the first time that two state-owned entities from Singapore and Malaysia have joined forces to acquire overseas telecom assets. We see this as a trend of things to come in the area of mergers and acquisitions generally.”

British MP George Galloway and his opponent the Daily Telegraph will leave no stone unturned to sort out what could be a spectacular libel case.