NEW DELHI: Today, Reliance Communications said it has received approval of the Competition Commission of India (CCI) for the demerger of its wireless division into Aircel Ltd and Dishnet Wireless Ltd.
“Reliance Communications Ltd has received an approval of the Competition Commission of India (CCI) for the proposed Scheme of Arrangement for demerger of the Wireless division of the company into Aircel Ltd and Dishnet Wireless Ltd,” the company said in a regulatory filing.
Reliance Communications and Aircel in September last year announced the merger of their wireless operations to create a combined entity with assets worth 65,000 crore.
“Post closing, the organization and the present shareholders of Aircel Ltd will hold 50 for each penny each in Aircel Ltd,” Reliance Communication said.
The organization has effectively gotten endorsement from the Securities and Exchange Board of India (Sebi), stock trades BSE and NSE for the arrangement and has documented an application with the National Company Law Tribunal (NCLT) for the same.
The exchange will lessen RCom’s obligation by 20,000 crore (USD 3 billion), while Aircel’s obligation would go around 4,000 crore (USD 600 million) on shutting in 2017, the two organizations had said a year ago.
Shares of Reliance Communications were exchanging 0.78 down at 37.95 on BSE.
RCom, in September a year ago, declared it will combine its remote telecom business with littler adversary Aircel to make what will be the nation’s third greatest cell phone administrator, with resource base of more than 65,000 crore and total assets of 35,000 crore.
Both the organizations will exchange 14,000 crore of obligation each to the joint wander, taking the aggregate obligation of the new organization to 28,000 crore.
Post finalizing of the negotiations, RCom and the present shareholders of Aircel Ltd (Maxis Communications Berhad) will hold 50 pct each in the blended element, with equivalent portrayal on the board and panels.
The Competition Commission of India’s gesture to RCom and Aircel merger comes in the midst of a huge combination drive in the telecom segment, escalated by the troublesome passage of newcomer Reliance Jio.
Earlier today the board of Idea Cellular approved its amalgamation with telecom operator Vodafone India and Vodafone Mobile Services, to create the country’s largest telecom service provider.