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Vodafone, Idea merge in all-share deal: Key highlights you should know

Combined venture will account for over 25 per cent of the allocated spectrum

Press Trust of India  |  Mumbai 

A man casts a silhouette onto an electronic screen displaying a Vodafone logo, in Mumbai. Photo: Reuters
A man casts a silhouette onto an electronic screen displaying a Vodafone logo, in Mumbai. Photo: Reuters

British major Vodafone and Aditya Birla group-run today announced the of their operations, creating the largest mobile operator by customer and market share.

The merged entity, which will come into force over the next two years, will be headed by as Chairman.



Vodafone will have its nominee as the chief financial officer, its CEO Vittorio Colao said here at a press meet, which was also attended by Birla.

The all-share for both partners excludes Vodafone's 42 per cent stake in Indus Towers and will be effected through issuing new in Idea to Vodafone and result in Vodafone deconsolidating Vodafone

Vodafone will own 45.1 per cent in the new company after transferring 4.9 per cent to the for Rs 3,874 crore in concurrent with completion of the

Idea will hold 26 per cent of the combined entity while the rest will be owned by public shareholders.

Idea and Vodafone said the merged entity will be jointly controlled by Vodafone and the as per shareholders' agreement.

With 204.68 million customers, Vodafone enjoys market share of 18.16 per cent. Idea has 16.9 per cent with 190.51 million customers as of December 2016, according to Trai data.

Airtel, with a market share of 23.58 per cent and a customer base of 265.85 million, leads the market both in terms of and customer base.

According to CLSA report in January, the merged entity will have of over Rs 80,000 crore, translating into a 43 per cent share by and 40 per cent by active subscriber base with around 400 million customers.

The combined venture will account for over 25 per cent of the allocated spectrum and will have to sell about 1 per cent (worth Rs 5,400 crore) to comply with spectrum cap norms.

"The pegs implied enterprise valuation of Rs 82,800 crore (USD 12.4 billion) for Vodafone and Rs 72,200 crore (USD 10.8 billion) for Idea," according to an exchange filing by Idea.

The had a net debt of Rs 1.07 trillion as of December 2016.

The Vodafone chief, who ruled out any chance of the lingering tax dispute with the government to affect the process, also said both the will have three representatives each on the board of the new company.

Colao also said the makes possible synergies of USD 10 billion.

He also added that both the brands, considering their strengths, will continue to operate separately.

Indicating Vodafone's intention of gradually exiting the country, Colao and Birla said over a period, both will have equal stakes in the merged entity.

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Vodafone, Idea merge in all-share deal: Key highlights you should know

Combined venture will account for over 25 per cent of the allocated spectrum

Combined venture will account for over 25 per cent of the allocated spectrum British major Vodafone and Aditya Birla group-run today announced the of their operations, creating the largest mobile operator by customer and market share.

The merged entity, which will come into force over the next two years, will be headed by as Chairman.

Vodafone will have its nominee as the chief financial officer, its CEO Vittorio Colao said here at a press meet, which was also attended by Birla.

The all-share for both partners excludes Vodafone's 42 per cent stake in Indus Towers and will be effected through issuing new in Idea to Vodafone and result in Vodafone deconsolidating Vodafone

Vodafone will own 45.1 per cent in the new company after transferring 4.9 per cent to the for Rs 3,874 crore in concurrent with completion of the

Idea will hold 26 per cent of the combined entity while the rest will be owned by public shareholders.

Idea and Vodafone said the merged entity will be jointly controlled by Vodafone and the as per shareholders' agreement.

With 204.68 million customers, Vodafone enjoys market share of 18.16 per cent. Idea has 16.9 per cent with 190.51 million customers as of December 2016, according to Trai data.

Airtel, with a market share of 23.58 per cent and a customer base of 265.85 million, leads the market both in terms of and customer base.

According to CLSA report in January, the merged entity will have of over Rs 80,000 crore, translating into a 43 per cent share by and 40 per cent by active subscriber base with around 400 million customers.

The combined venture will account for over 25 per cent of the allocated spectrum and will have to sell about 1 per cent (worth Rs 5,400 crore) to comply with spectrum cap norms.

"The pegs implied enterprise valuation of Rs 82,800 crore (USD 12.4 billion) for Vodafone and Rs 72,200 crore (USD 10.8 billion) for Idea," according to an exchange filing by Idea.

The had a net debt of Rs 1.07 trillion as of December 2016.

The Vodafone chief, who ruled out any chance of the lingering tax dispute with the government to affect the process, also said both the will have three representatives each on the board of the new company.

Colao also said the makes possible synergies of USD 10 billion.

He also added that both the brands, considering their strengths, will continue to operate separately.

Indicating Vodafone's intention of gradually exiting the country, Colao and Birla said over a period, both will have equal stakes in the merged entity.
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Business Standard
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Vodafone, Idea merge in all-share deal: Key highlights you should know

Combined venture will account for over 25 per cent of the allocated spectrum

British major Vodafone and Aditya Birla group-run today announced the of their operations, creating the largest mobile operator by customer and market share.

The merged entity, which will come into force over the next two years, will be headed by as Chairman.

Vodafone will have its nominee as the chief financial officer, its CEO Vittorio Colao said here at a press meet, which was also attended by Birla.

The all-share for both partners excludes Vodafone's 42 per cent stake in Indus Towers and will be effected through issuing new in Idea to Vodafone and result in Vodafone deconsolidating Vodafone

Vodafone will own 45.1 per cent in the new company after transferring 4.9 per cent to the for Rs 3,874 crore in concurrent with completion of the

Idea will hold 26 per cent of the combined entity while the rest will be owned by public shareholders.

Idea and Vodafone said the merged entity will be jointly controlled by Vodafone and the as per shareholders' agreement.

With 204.68 million customers, Vodafone enjoys market share of 18.16 per cent. Idea has 16.9 per cent with 190.51 million customers as of December 2016, according to Trai data.

Airtel, with a market share of 23.58 per cent and a customer base of 265.85 million, leads the market both in terms of and customer base.

According to CLSA report in January, the merged entity will have of over Rs 80,000 crore, translating into a 43 per cent share by and 40 per cent by active subscriber base with around 400 million customers.

The combined venture will account for over 25 per cent of the allocated spectrum and will have to sell about 1 per cent (worth Rs 5,400 crore) to comply with spectrum cap norms.

"The pegs implied enterprise valuation of Rs 82,800 crore (USD 12.4 billion) for Vodafone and Rs 72,200 crore (USD 10.8 billion) for Idea," according to an exchange filing by Idea.

The had a net debt of Rs 1.07 trillion as of December 2016.

The Vodafone chief, who ruled out any chance of the lingering tax dispute with the government to affect the process, also said both the will have three representatives each on the board of the new company.

Colao also said the makes possible synergies of USD 10 billion.

He also added that both the brands, considering their strengths, will continue to operate separately.

Indicating Vodafone's intention of gradually exiting the country, Colao and Birla said over a period, both will have equal stakes in the merged entity.

image
Business Standard
177 22