Almost all papers carried this news with full details.But only a few pointed out that Rs. 544 crores that BK Modi’s M. Corp Global Communication Pvt Ltd was receiving from Idea as non-compete fee shall make the share buyback price at Rs. 96.63 per share and not Rs 77.3 as reported widely.This is because in the past SEBI has not allowed exclusion of payment of non-compete fee while calculating the open offer price.Latest case in point is Mysore Cement wherein Heidelberg the acquirer was made to revise the open offer to the public including the non-compete fee that it had agreed to pay to the promoters stake.This happened when SEBI objected to two different offers, one for the promoters and other for the ordinary shareholder.
So do not sell your Spice Telecom shares in a hurry as everyone is advising now, and wait for SEBI to take congnizance of this issue and direct Idea Cellular to revise the open offer to Rs.96.6, same that IDEA has agreed to Mr. BK Modi.
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