The Department of Telecommunications may relook at mobile operator Etisalat DB’s proposal of merging new player Allianz Infratech with itself, as it now feels the deal does not involve sale of equity, which is barred for three years.
DoT in October this year rejected a proposal from UAE-based Etisalat DB Telecom to merge Allianz Infratech with itself. It shot down the proposal on the grounds that there is a three-year lock-in on sale of equity by new operators.
“This arrangement appears to deal in no way with merger of companies which is in fact the issue of the present reference of the DoT. Merger as well as demerger of companies take place according to the provisions of the Companies Act, 1956. Accordingly, the DoT may give a re-look regarding their draft proposal. The lock-in period clause deals with sale of equity of person as a substantial shareholder", said the note.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app