MUMBAI: Anil Ambani-promoted Reliance Communications on Monday said the Competition Commission of India has approved its merger deal with Aircel.
This comes after the deal had already received an approval from the Securities and Exchange Board of India along with the BSE and the National Stock Exchange (NSE). It is now lying with National Company Law Tribunal for approval.
“The company has received an approval of the CCI for the proposed scheme of arrangement for demerger of wireless division of Rcom into Aircel Limited and Dishnet Wireless Limited (the scheme),” the company said in a statement.
In September 2016, RCom
announced it would transfer its wireless telecom business of Reliance Telecom (RTL) into Aircel and its subsidiaries. The turnover of the wireless business undertaking of RTL as on March 2016 stood at Rs 10,605 crore, which is 48 per cent of the total turnover of RCom. The combined entity would have assets worth Rs 65,000 crore.
“Post closing, the company and the present shareholders of Aircel Ltd will hold 50 per cent each in Aircel Ltd,” Reliance Communication said.
Analysts say the demerger will be a key milestone in the ongoing consolidation in the telecom sector. It will enable RCom-Aircel to give strong competition to its peers in the backdrop of the Reliance Jio led disruptions. It will also enable RCom to access the superior 800MHz band in eight circles with validity till 2033, as its own spectrum is dated to expire in 2021-2022.
The two companies had said last year that RCom’s debt will reduce by Rs 20,000 crore, while Aircel’s debt would go down by Rs 4,000 crore.