Providence selling up to $242 mln stake in India's Idea Cellular - source

MUMBAI, Sept 3 Wed Sep 3, 2014 9:22am EDT

MUMBAI, Sept 3 (Reuters) - Private-equity firm Providence Equity Partners is selling a 2.4 percent stake in India's Idea Cellular Ltd to raise up to $242 million, a source directly involved in the deal said on Wednesday.

Providence, which had as of end-June a 9.31 percent stake in Idea through its arm P5 Asia Investments (Mauritius) Ltd, is selling the shares in a price band of roughly 166 to 172 rupees a share, said the source.

The source declined to be named as the information is not public yet. A senior Providence executive in India could not immediately be reached for a comment. An Idea Cellular spokeswoman declined comment.

Ahead of the news, Idea shares closed 0.2 percent lower at 172.30 rupees in a Mumbai market that rose 0.39 percent. (Reporting by Sumeet Chatterjee and Devidutta Tripathy; Editing by Subhranshu Sahu)