STT-TM to dump Idea deal

The Singapore Technologies Telemedia (STT) and Telekom Malaysia (TMI) consortium has pulled out of the transaction for acquiring 47.7 per cent stake in Idea Cellular for a consideration of $390 million.

"It is with deep regret that the transaction has been called off since we have not secured the necessary regulatory approvals within the six month period allowed by the sale agreement," a statement of the Singapore Telemedia said.

"India continues to be an important market to ST Telemedia and we look forward to exploring other opportunities in future. Over the past few months, the consortium, together with Idea, has worked diligently and closely with the Indian government officials to address every matter that has been discussed," it said.

"Telekom Malaysia Berhad wishes to announce that the proposed acquisition by TM International, a wholly owned subsidiary of TM, as part of a consortium with ST Telemedia (the consortium), of 47.7 per cent of the enlarged equity interest in Idea has lapsed in accordance with the terms of the transaction documents," a statement from Telekom Malaysia said.

The proposed transaction lapsed as approvals from the Department of Telecommunications and the Foreign Investment Promotion Board of India required for the proposed acquisition were not obtained by June 11, 2005, being the date specified in the transaction documents, it said.

TM is currently reviewing all its available options in respect of its investment strategy in India and the region, it further added.