Press Release (ePRNews.com) - DELHI, India - Mar 21, 2017 - Anil Ambani owned Reliance Communications Ltd (RCom) got a nod from capital markets regulator Securities and Exchange Board of India (SEBI) to merge its wireless division with Aircel Ltd and Dishnet Wireless Ltd. The proposed merger will create India’s third largest telecom operator by users.
As soon as this news was rolled out, shares of Reliance Communications shot up to .9% to Rs37.3 apiece and touched an intraday high of Rs38.15 and a low of Rs36.25 a share on the BSE.
The company has procured required approvals from the National Stock Exchange of India Ltd and BSE Ltd. Reliance Communications has also an application with National Company Law Tribunal (NCLT), Mumbai Bench, for its approval, it said in a statement.
In September 2016, RCom signed a definitive agreement with Aircel to merge their wireless business with Aircel. The merged entity will be combining RCom’s wireless business and Aircel’s operations in India, including the entire spectrum to be held by the two companies. With all approvals coming through, both RCom and Maxis Communications will gain 50% shareholding in the merged entity with equal representation on the board and committees.
Through this deal, Rcom will be able to retain all the non-wireless business, streamline its divisions and reduce debt by Rs20000 crore, or roughly 48% of the Rs41362.1 crore outstanding as of 31 March 2016. Owned by Maxis Communications Bhd, Aircel too will be able to reduce its debt by Rs4000 crore upon completion of the transaction in 2017.
The merged company’s subscribers will have access to nationwide 4G LTE services in the sub-1GHz band, under RCom’s existing nationwide spectrum sharing and intra-circle roaming arrangements with Reliance Jio Infocomm Ltd.
Reference Link: http://www.dnaindia.com/money/report-reliance-communicati…
Website Link: http://www.relianceada.com/ada/rcom.html