ALSO READVodafone - Idea merger: Should you buy Idea Cellular? SoftBank denies interest in picking up stake in Vodafone-Idea merger Idea Cellular zooms over 40% in two days as Vodafone confirms merger talks Idea Cellular turns volatile after board approves merger with Vodafone Bharti Infra stocks get jitters on a possible Vodafone-Idea merger
Vodafone will own 45.1 percent of the merged entity, after it transfers about 4.9 percent to promoters of Idea and/or their affiliates for 38.74 billion rupees ($592.15 million) in cash, Idea said.
Idea will have the sole right to appoint the chairman
Shares in Idea rose as much as 14.25 percent immediately after the merger news but gave up gains to be trading up 3.8 percent at 0355 GMT.
The merger was necessitated by the launch of Mukesh Ambani-owned Reliance Jio Infocomm that has shaken the Indian wireless telephony market with its low rates.Jio has made an immediate impact with the launch of free calls and cut-price data, forcing the three biggest operators — Bharti Airtel, Vodafone and Idea — to slash prices and accept lower profits. With inputs from Agencies