RCom shares rise 4% after co says Aircel merger 'very shortly'

Shares of Reliance Communications rose by over 4% on Thursday after the company said it expects to announce its merger with Aircel "very shortly".

The stock went up by 4.19% to settle at Rs 49.70 on BSE. During the day, it gained 5.76% to Rs 50.45.

At NSE, shares of the company rose by 4.19% to close at Rs 49.70.

On the volumes front, 56.55 lakh shares of the company were traded at BSE and over 4 crore shares changed hands at NSE during the day.

With talks with Aircel extended twice, Reliance Communications (RCom) today said it expects to announce the merger with the company "very shortly".

"RCom and Maxis Communications Berhad (MCB) and Sindya Securities and Investments Pvt Ltd (Sindya), the shareholders of Aircel Ltd (Aircel), expect to sign binding definitive documentation and announce the proposed transaction for the combination of the Indian wireless business of RCom and Aircel very shortly," the company said in a BSE filing.

However, it said that any transaction will be subject to regulatory, shareholders' and other third party approvals. "Hence, there is no certainty that any transaction will result," it added.

Earlier last month, the company and Aircel had decided to extend the discussion period for their possible merger by 30 days.

Meanwhile, Reliance Communications yesterday said ratings agency Icra has upgraded its outlook to 'stable' from negative on its long term rating 'BBB+'.

It has also reaffirmed rating of A2+ for short-term fund based/non-fund based limits and commercial papers of the company, it had said in a BSE filing.