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Idea Cellular seeks NCLT nod for merger with Vodafone India

Press Trust of India  |  New Delhi 

Mobile operator today said it has sought approval of the Tribunal (NCLT) for of its operations with Vodafone

Idea's move comes after the Securities and Exchange Board of (Sebi) and exchanges gave their conditional nod to the proposed USD 23-billion deal that would create the country's largest telecom operator.


"...yesterday filed an application before the National Company Tribunal, bench, for approval of the of Vodafone Ltd and Vodafone Mobile Services Ltd with the company," Idea said in a statement.

The NCLT application follows "the receipt of approvals from the Competition Commission of on July 24, 2017, and the stock exchanges/on August 4, 2017", it added.

The combined entity is expected to create a mobile services juggernaut with nearly 400 million users and a 35 per cent market share in terms of customers, potentially toppling from its current pole position.

The deal gives Vodafone an implied enterprise value of Rs 82,800 crore and Idea Rs 72,200 crore.

Post the transaction, the British firm will own 45.1 per cent stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26 per cent after paying Rs 3,874 crore cash for a 4.9 per cent stake.

The remaining 28.9 per cent will be held by other shareholders.

and the bourses have recently given the conditional nod to the deal.

In their 'no-objection' letters on scheme of amalgamation, the two bourses -- the BSE and the NSE -- emphasised that all the conditions put forth by the regulator need to be placed before the NCLT while seeking its go-ahead.

noted that a complaint was received alleging that one of the promoters of had purchased 0.23 per cent shares of the company prior to announcement of the draft amalgamation scheme, in violation of securities laws, and added that the charges are being examined by it.

The buyers have given a voluntary undertaking not to dispose of the said shares till gives further directions and any liability eventually held to be valid against the purchasers shall be borne by them.

Further, the explanatory statement to the notice to shareholders needs to disclose prominently that is looking into the charges with regard to said transaction done by the purchasers prior to the announcement of the scheme.

The regulator has asked Idea to include the observations of and exchanges in the petition to be filed before NCLT and the company is obliged to bring the same to the tribunal's notice.

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

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