RCom shareholders okay demerger of optic fibre division
Press Trust of India / Mumbai May 26, 2009, 17:01 IST
Anil Ambani group firm Reliance Communications (RCom) today said its shareholders have approved the demerger of its optic fibre division to its infrastructure division Reliance Infratel. In a filing to the Bombay Stock Exchange RCom said the equity shareholders have approved the scheme of arrangement between the company and its infrastructure division Reliance Infratel.
In January, the board had approved the consolidation of its passive infrastructure business through a scheme of arrangement for demerger of optic fiber undertaking of the company to Reliance Infratel.
The demerger would reduce the operating cost and segregate the telecommunication and infrastructure business of Reliance Communication.
The scheme is expected to enhance overall flexibility. No additional equity shares are to be issued and no change is proposed in the capital structure of the company in terms of said scheme of arrangement, RCom had said.
The scheme is now subject to requisite approvals of the Bombay High Court, the filing added.Last week, the shareholders of Reliance Infratel had adjourned the meeting of its shareholders amid reports of minority shareholders raising objection to the scheme of consolidation of RCom's optic fibre division with itself.
Shares of RCom closed at Rs 291.45, down 9.56 per cent on the BSE.
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