Reliance Communications (RCOM) has received 99.99 percent shareholders approval for merger of its wireless business with Aircel, a company statement said here on Monday. Also Read - RCom concludes sale of 'media nodes' to Reliance Jio for Rs 2,000 croreAlso Read - Mobile phone customer base in India reduces by over 58 million in April 2018
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“The shareholders of Reliance Communications at their meeting convened pursuant to the order of the National Company Law Tribunal (NCLT), have today approved with 99.99 percent majority for the Scheme of Arrangement for demerger of the wireless division of the company and Reliance Telecom Limited (RTL), a wholly-owned subsidiary of the company, into Aircel Limited and Dishnet Wireless Limited (the Scheme),” the company statement said.
It was also approved by shareholders of RTL at their meeting held pursuant to the order of the NCLT, the statement added. The shareholders of Aircel have also approved the said scheme at their meeting held on April 22, 2017, convened under the order of the NCLT. ALSO READ: Reliance Communications might sack 380 employees for below-par performance
The company has already received approval from the Securities and Exchange Board of India, BSE, National Stock Exchange of India Limited and Competition Commission of India for the proposed Scheme of Arrangement. The RCOM-Aircel merger will create a strong operator clearly ranked amongst India’s top four telecom companies by customer base and revenues, also ranking amongst the top three operators by revenues in 12 important circles.
The statement said, the merged entity will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through the extended validity of spectrum holdings till 2033-36. “It will be one of India’s largest private sector companies, with an asset base of over Rs 65,000 crore ($10 billion) and net worth of Rs 35,000 crore ($5.38 billion),” the statement said. ALOS READ: Aircel-Maxis case has no impact on merger: Reliance Communications
RCOM’s overall debt including the deferred spectrum payment liability will be reduced by Rs 20,000 crore ($3.07 billion) and Aircel’s debt will reduce by Rs 4,000 crore ($615 million), upon completion of the transaction. A petition is being filed with the NCLT, Mumbai Bench, for approval of the said scheme.
The proposed transaction is subject to other necessary approvals. Post closing, RCOM and the present shareholders of Aircel will hold 50 per cent stake each in Aircel Limited. RCOM shares were trading at Rs 34.45 per share, up 1.62 per cent in the BSE at 2.26 p.m.