RCom-Aircel fusion forms India's 4th largest telco

Reliance  Communications will merge its wireless telecom business with Aircel, resulting in an asset base of over Rs 65,000 crore. RCom will become the 4th biggest mobile phone operator in India, behind Airtel, Vodafone and Idea Cellular, following the merger.

Published: 15th September 2016 05:50 AM  |   Last Updated: 15th September 2016 05:50 AM   |  A+A-

2016-09-14T132502Z_1_LYNXNPEC8D0RX_RTROPTP_3_RELIANCE-COMMUNICATIONS-RESULTS

NEW DELHI:  Reliance  Communications will merge its wireless telecom business with Aircel, resulting in an asset base of over Rs 65,000 crore. RCom will become the 4th biggest mobile phone operator in India, behind Airtel, Vodafone and Idea Cellular, following the merger.

However the company would require approvals from Sebi, Stock Exchanges, CCI, DoT and various courts, where Aircel is involved in legal wrangles. The company plans to get the approval in six months.

RCom and Aircel will hold 50 per cent each in the new company. The board of the new firm will have equal representation from the two sides. Aircel’s majority owner, Malaysia’s Maxis Communications Berhad (MCB), and RCom on Wednesday issued a joint statement that definitive documents for the merger of their Indian wireless businesses have been signed.

RCom has about 110 million customers (9.8% market share), while Aircel has 84 million subscribers (8.5% market share).  Both will transfer Rs 14,000 crore of debt each to the joint venture, taking the total debt of the new company to Rs 28,000 crore.

The deal will help RCom cut its debt by Rs 20,000 crore. The New entity will hold 19.3 per cent of total spectrum - the highest in the sector.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

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.

flipboard facebook twitter whatsapp