Reliance Communications (RCom) has received a nod from its shareholders for a merger with Aircel. At their meeting convened under the order of National Company Law Tribunal (NCLT), shareholders today approved with 99.99 percent majority for the Scheme of Arrangement for demerger of the wireless division of the company and Reliance Telecom Limited (RTL) into Aircel and Dishnet Wireless Limited.
Shareholders of RCom also approved the Scheme at their meeting held today according to the order of the NCLT. The shareholders of Aircel have also approved the proposed Scheme at their meeting held on April 22, 2017, which is also convened under the order of NCLT.
If you recall, RCom has already received approval from the Securities and Exchange Board of India, BSE Limited, National Stock Exchange of India Limited, and Competition Commission of India for the said Scheme of Arrangement.
With this approval, both the RCom and Aircel will combinedly form India’s fourth largest telecom operator. “The RCOM-Aircel merger will create a strong operator clearly ranked amongst India’s top 4 telcos by customer base and revenues, also ranking amongst the top 3 operators by revenues in 12 important circles,’ read RCom’s press release.
Furthermore, the merged entity will have the second-largest spectrum holding amongst all the Indian operators with 449MHz across the 850, 900, 1800, and 2100MHz bands. It will also become one of the India’s largest private sector companies with an asset base of over Rs. 65,000 crore and net worth of Rs. 35,000 crore.
RCOM’s overall debt including the deferred spectrum payment liability will be reduced by Rs 20,000 crore. Whereas, Aircel’s debt will reduce by Rs. 4,000 crores, upon completion of the deal.
For now, a petition is being filed with the NCLT, Mumbai Bench for the approval of the said scheme. Nevertheless, the proposed transaction is subject to other necessary approvals as well. Post the transaction, Rcom and the present shareholders of Aircel will hold 50 percent stake each in Aircel.
Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.