Idea Cellular and Vodafone India merger contract is anticipated to be concluded by next year March, since all regulatory endorsements are expected to be gained by that time, a source aware of this matter claimed to the media.
“There are just 2 permission remaining in the merger scheme of the Vodafone and Idea. It must be concluded by end of the present economic year,” an industry resource, who wished to be unnamed, claimed to the media. Emails derived to Idea and Vodafone did not draw out any answer. Both the firms are before NCLT (National Company Law Tribunal) for asking its green signal after which they will require last endorsement from the DoT (Department of Telecom).
Idea Cellular will conduct a meeting of creditors and stakeholders in next month to look for their endorsement for the merger of business of Vodafone India with itself. The conference of equity secured creditors, shareholders, and unsecured creditors will be conducted in Gandhinagar. It is being assembled following instructions of the NCLT bench located in Ahmedabad.
Reliance Communications last week declared execution of mobile business amalgamation contract with Aircel owing to regulatory and legal uncertainties, and different interferences by vested interests resulting in inordinate holdups in receipt of applicable endorsements for the projected transaction. Previously this year, Idea Cellular and Vodafone India had decided to combine their operations to make the largest telecom operator of the country worth of over $23 Billion with a market share of 35%.
The total entity of Idea Cellular and Vodafone India, which are presently number 3 and 2 of India, respectively, might remove Bharti Airtel to answer the fierce cost battle in the second biggest telecom market in the world. The contract gives Idea an applied enterprise value of Rs 72,200 Crore and Vodafone India Rs 82,800 Crore.
After the transaction, the British company will posses 45.1% share in the amalgamated entity, while the Aditya Birla organization, Ideas parent, will consist 26% post paying Rs 3,874 Crore cash for a 4.9% share. The rest of the 28.9% will be held by different stakeholders.
Well, it seems that we all are eager for the merger.