Idea shareholders approve scheme of merger with Vodafone India

Shareholders of telecom operator Idea Cellular have approved the scheme relating to the merger of its mobile business with Vodafone India, a regulatory filing showed.

Published: 13th October 2017 02:57 PM  |   Last Updated: 13th October 2017 04:05 PM   |  A+A-

Image used for representational purpose only. (File photo | Reuters)

By PTI

NEW DELHI: Shareholders of telecom operator Idea Cellular have approved the scheme relating to the merger of its mobile business with Vodafone India, a regulatory filing showed.

Over 99 per cent of Idea shareholders voted in favour of the merger at the shareholders' meeting on October 12, 2017, the filing by the Aditya Birla group firm stated today.

Both telcos have approached the National Company Law Tribunal (NCLT) seeking its nod. In the next step, they need a final approval from the Department of Telecom.

The meeting of the Idea shareholders was convened after directions of the NCLT.

Earlier this year, Vodafone India and Idea Cellular had agreed to merge their operations to create the country's largest telecom operator worth of more than USD 23 billion with a 35 per cent market share.

The combined entity of Vodafone India and Idea Cellular, which are currently India's number 2 and 3, respectively, would dislodge Bharti Airtel to counter the fierce price war in the world's second-largest telecom market.

The deal gives Vodafone India an implied enterprise value of Rs 82,800 crore and Idea Rs 72,200 crore.

Post completion of the deal, the British firm will own 45.1 per cent stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26 per cent after paying Rs 3,874 crore cash for a 4.9 per cent stake.

The remaining 28.9 per cent will be held by other shareholders.

Stock of Idea traded at Rs 79.45, up 6.64 per cent from its previous close, in the afternoon session.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.