Outcome of Board Meeting

• Security Code: 532822
• Company: IDEA

Idea Cellular Ltd has informed BSE that the Board of Directors of Idea Cellular Limited (Buyer) has, at its meeting held on November 24, 2015 decided to enter into an agreement with Videocon Telecommunications Limited (Seller) for acquiring right to use spectrum, pursuant to the DoT "Guidelines for Trading of Access Spectrum by Access Service Providers" (Guidelines) dated October 12, 2015, for the telecom service areas of Gujarat and Uttar Pradesh (West). This agreement for Idea's two Leadership telecom service areas is for a quantum of 2x5 MHz contiguous blocks of 1800 MHz in each service area, with right to use spectrum until December, 2032. The transaction will be effective only after (a) completion of the due diligence related to above spectrum and (b) confirmation of the DoT for the transfer of right to use spectrum. Both Companies intend to jointly intimate the DoT for trading the right to use the spectrum as per the Guidelines, after completion of certain aspects of due diligence. As per the Guidelines the effective date of trading will not be earlier than 45 days from the date of joint intimation.

The aggregate consideration for the right to use spectrum transaction is Rs. 3,310 crores, which may be subject to adjustment based on the due diligence exercise. Along with the right to use spectrum, Idea will also be taking over the outstanding 'Deferred Payment Liability' of Videocon Telecommunications Ltd., payable to the DoT, in respect of the spectrum being acquired for service areas of Gujarat and Uttar Pradesh (West) in the November 2012 Access Spectrum auction. The amount of outstanding 'Deferred Payment Liability' after repayment of first instalment on December 1, 2015 by Seller will be Rs. 482.26 crores and this amount plus interest accrued thereon till the date of closing of transaction (as contemplated in the said agreement) will be reduced from the payment of the aggregate consideration of Rs. 3,310 crores payable for right to use the spectrum.