You are here: Home » News-IANS » Business-Economy
Business Standard

RCOM gets CCI approval for Aircel merger

IANS  |  New Delhi 

Communications has received an approval of the Competition Commission of (CCI) for the proposed with telecom service provider Aircel, a company statement said here on Monday.

"Communications has received an approval of CCI for the proposed Scheme of Arrangement for demerger of the wireless division of the company into Aircel Limited and Dishnet Wireless Limited (the Scheme)," the statement said.

The company has already received approval from the Securities and Exchange Board of (SEBI), BSE Limited (BSE) and National Stock Exchange of Limited (NSE) for the proposed Scheme of Arrangement and filed an application with the (NCLT), Mumbai Bench, for approval of the said scheme.

The proposed transaction is subject to other necessary approvals.

Post closing, Communications and the present shareholders of Aircel will hold 50 per cent each in Aircel.

Industrialist Anil Ambani-led RCOM and Aircel announced plans to merge their wireless operations on September 14, 2016 to give birth to an entity with assets worth Rs 65,000 crore.

RCOM and Maxis Communications Berhad (MCB) will hold 50 per cent each in the merged entity with equal representation on the board and committees.

The merged entity will have the second-largest spectrum holding among all operators, aggregating 448 MHz across the 850, 900, 1,800 and 2,100 MHz bands.

The transaction will reduce RCOM's debt by Rs 20,000 crore, while Aircel's debt would go down by Rs 4,000 crore on closing in 2017.

Communications ended the day's trade in the BSE, down 0.26 per cent at Rs 38.15 per share.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 20 2017. 16:26 IST