NEW DELHI: Anil Ambani-led Reliance Communications nowadays agreed to merge its wireless telecom industry with smaller rival Aircel to create the country's 4th-biggest mobile phone operator with asset base of greater than Rs 65,000 crore.
In the biggest consolidation within the nation's telecom sector, RCom and Aircel's majority owner, Malaysia's Maxis Communications Berhad (MCB), announced signing of definitive paperwork for the merger in their Indian wireless companies.
RCom and Aircel will dangle 50 per cent every within the new corporate. The board of the brand new corporate will have equal representation from the two facets.
"The RCom-Aircel combination will create a strong operator clearly ranked amongst India's top 4 telcos by customer base and revenues, also ranking amongst the top three operators by revenues in 12 important circles," both the firms mentioned in a joint statement.
RCom is India's 4th-biggest telecom operator with nearly 110 million consumers, whilst Aircel ranks 5th with 84 million subscribers.
RCom had 9.8 per cent marketplace share whilst Aircel had 8.five% share. Sistema, which RCom earlier merged with, had zero.7% share.
Both the firms will transfer Rs 14,000 crore of debt every to the joint venture, taking the full debt of the brand new corporate to Rs 28,000 crore, with the exception of Rs 6,000 crore of spectrum fee legal responsibility.
The deal will lend a hand RCom pare its debt by means of Rs 20,000 crore (or 40 per cent of the full debt on its books).
"RCom will continue to own and operate its high growth businesses in the domestic and global enterprise space, Data Centres, optic fibre and related telecom infrastructure, besides owning valuable real estate," the statement mentioned.
MTS (Sistema) will proceed to carry 10 per cent stake in RCom, with no presence at the board.
In the biggest consolidation within the nation's telecom sector, RCom and Aircel's majority owner, Malaysia's Maxis Communications Berhad (MCB), announced signing of definitive paperwork for the merger in their Indian wireless companies.
RCom and Aircel will dangle 50 per cent every within the new corporate. The board of the brand new corporate will have equal representation from the two facets.
"The RCom-Aircel combination will create a strong operator clearly ranked amongst India's top 4 telcos by customer base and revenues, also ranking amongst the top three operators by revenues in 12 important circles," both the firms mentioned in a joint statement.
RCom is India's 4th-biggest telecom operator with nearly 110 million consumers, whilst Aircel ranks 5th with 84 million subscribers.
RCom had 9.8 per cent marketplace share whilst Aircel had 8.five% share. Sistema, which RCom earlier merged with, had zero.7% share.
Both the firms will transfer Rs 14,000 crore of debt every to the joint venture, taking the full debt of the brand new corporate to Rs 28,000 crore, with the exception of Rs 6,000 crore of spectrum fee legal responsibility.
The deal will lend a hand RCom pare its debt by means of Rs 20,000 crore (or 40 per cent of the full debt on its books).
"RCom will continue to own and operate its high growth businesses in the domestic and global enterprise space, Data Centres, optic fibre and related telecom infrastructure, besides owning valuable real estate," the statement mentioned.
MTS (Sistema) will proceed to carry 10 per cent stake in RCom, with no presence at the board.
RCom, Aircel announce merger; create fourth largest telco in India
![RCom, Aircel announce merger; create fourth largest telco in India]()
Reviewed by Kailash
on
March 03, 2018
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