Vodafone-Idea merger To Be Completed in 2018 - YourDataPlan - Telecom Updates & Gadget News

Breaking

Post Top Ad

Vodafone-Idea merger To Be Completed in 2018

Biggest merger deals in the Telecom sector in India. The competition commission of India's (CCI) has given their approval for merger of Vodafone with Idea Telecom services

If the proposed merger executed,The combined entity, with its scale, size and synergies, will be a stronger rival to Reliance Jio Infocomm, which disrupted the market with free voice and data offers for about six months after it started services in September.


Combined entity will be the India’s largest telecom company by subscribers with almost 400 million customers and a 41% revenue market share when they merge. 

Currently Approvals from Securities & Exchange Board of India (Sebi) ​and National Company Law Tribunal (NCLT) ​are still pending.


A day after competition regulator gave its nod to the Idea Cellular and Vodafone merger, Kumar Mangalam Birla, chairman of Idea Cellular and Vittorio Colao, chief executive, Vodafone Group in a joint statement ​Tuesday ​said they expect the merger between the two companies to be completed in 2018. 


The merged entity structure will be similar to :

1. Vodafone will initially hold a 50% stake in the combined entity, while the Aditya Birla Group and public shareholders will hold 21.1% and 28.9%, respectively. 

2. Vodafone will divest a 4.9% stake to the Birla group, which would increase its stake to 26%, thus crossing the threshold for an open offer. 

3. The takeover code stipulates that if an entity acquires 25% of a listed company, it has to make an open offer for an additional 26% from public shareholders. 

4. Vodafone and the Birla group announced in March that Kumar Birla would be chairman of the new entity.

Follow Us

Post Top Ad