RCom-Aircel merger talks get 30 days extension

By May 21st, 2016 AT 6:15 PM

Anil Ambani-owned Reliance Communications, in an official statement, said that it is further extending merger talks with Aircel promoters by further 30 days to June 22 following substantial progress in their discussions.

mobile-calling

The talks originally started on December 22 for a 90-day period since December 22, but got extended to May 22. RCom is currently in talks with Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited (Sindya), the shareholders of Aircel to consider the potential combination of the Indian wireless business of RCom and Aircel.

The companies, through the merger talks, are looking at deriving the expected substantial benefits of in-country consolidation, including Opex and Capex synergies and revenue enhancement.

“The discussions, though at advanced stage, are non-binding in nature. Any transaction is subject to completion of due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result, RCom said in a statement.

The Anil Ambani-owned company, which is the fourth largest telco in India, is simultaneously merging Sistema Shyam Teleservices’ wireless business with itself. Under the structure being discussed, RCom is likely to combine its wireless business with Aircel. According to an earlier ET report, RCom-Aircel deal would create an entity with revenue of about Rs 25,000 crore annually.

Both RCom and Aircel’s promoters will hold 50% each in the merged entity, which would be renamed and could emerge as India’s No. 3 carrier by users, the report said. The merger, if takes place, will help both companies stay relevant in an intensely competitive market, which is currently being led by Bharti Airtel, followed by Vodafone and Idea Cellular.

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Ajay
Ajay

Huh! Waiting for BSNL-MTNL merger… :-\

Ajay
Ajay

Well, there is a mistake – not 30 days, it is 90 days. If you do not use your number for 90 days, your number will be suspended. See TRAI guideline: “As per TRAI regulations w.e.f 22nd March ’13, Services to any Prepaid Mobile connection will be deactivated for subscribers with less than Rs.20 balance and if there is no usage i.e. without any usage (incoming or outgoing voice/video calls, Outgoing SMS, Mobile Internet / Data usage, VAS usage or purchases with balance) for 90 days. Prepaid Mobile connections can be reactivated within grace period of 15 days from the… Read more »

Pallab
Pallab

Your comment is awaiting moderation.
Off Topic : I just ported my Idea number which is on my mother’s name and I port this number to Vodafone with my documents. And from last 7 days I receive this message can anyone help me is my number going stop.
postimg.org/image/ek5q1b6sp/

Niranjana NK
Niranjana NK

The SMS in the image only suggests you to use the number and if not used for 30 continuous days for calls, SMS or data then it ll be de activated.. Nothing about documents is mentioned

Abhishek Chatterjee
Abhishek Chatterjee

lol.. portout er poreo old operator msg pathate thake..
vodafone a port out hoyegeche.. so ignore this msgs..

Jagannath
Jagannath

Nothing serious. Just ignore these msgs.

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