RCom-Aircel merger gets approval from SEBI, BSE and NSE - chaprama | Insights from the world of Technology and Lifestyle


Wednesday, March 15, 2017

RCom-Aircel merger gets approval from SEBI, BSE and NSE

Reliance Communications (RCom) on Wednesday said that it has received approval of the Securities and Exchange Board of India (SEBI), BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) for the proposed Scheme of Arrangement for demerger of the Wireless division of the Company into Aircel and Dishnet Wireless (the Scheme).

The Anil Ambani-led telco has now filed an application with National Company Law Tribunal (NCLT), Mumbai Bench, for approval of the said Scheme. The proposed transaction is subject to other necessary approvals, the telco said. Post closing, the company and the present shareholders of Aircel Limited will hold 50% each in Aircel.

The combined company will be one of India’s largest private sector companies, with an asset base of over Rs. 65,000 crore ($9.7 billion) and net worth of Rs. 35,000 crore ($5.2 billion). RCom had inked an agreement with Aircel in September last year. Under the deal, RCom is merging its wireless business with Aircel’s wireless operations to create a new entity with assets worth Rs 65,000 crore.

The merger will create India’s fourth largest telco by customers and revenues. The merged entity will have the second-largest spectrum holding among all operators, aggregating 448 MHz across 850, 900, 1800 and 2100 MHz bands.

RCom recently said that its merger with Aircel, and tower deal with Brookfield will be completed by the middle of 2017. It had also said that its merger with Sistema Shyam Teleservices, which operates under MTS India, will be completed by March end this year.

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