Idea-Vodafone Deal: NCLT Gives Nod To The $23 Billion Merger

Mindy Sparks
January 13, 2018

Kumar Mangalam Birla owned Idea Cellular has received approval from National Company Law Tribunal (NCLT)-Ahmedabad for its proposed merger with Vodafone Mobile Services and Vodafone India.

"Considering the entire facts and circumstances of the case and on perusal of the Scheme and the proceedings, it appears that the requirements of the provisions of sections 230-232 of the Companies Act, 2013 are satisfied".

"The scheme is genuine, bona fide and in the interest of the creditors and the shareholders", said the NCLT Ahmedabad bench. Shares closed up 1.35% or 1.45 points to Rs 108.60 apiece on the BSE Sensex. The higher spectrum availability and larger scale radio access along with re-deployment of overlapping equipment from rationalised sides will also lead to lower capital expenditure. "Most of the approvals for the merger are already in place".

Post the transaction, the British firm will own 45.1 per centstake in the merged entity, while the Aditya Birla group, Ideas parent, will have 26 percent after paying Rs 3,874 crore cash for a 4.9 per cent stake.

The $23 billion merger deal between the two operators was estimated to come to a close in the first half of 2018.

After the merger of two telecom companies, Idea and Vodafone will jointly have over 400 million mobile subscribers and together account for the largest share of the Indian telecom segment, reports PTI quoting latest data published by the Telecom Regulatory Authority of India (TRAI). Over 99 per cent of Idea shareholders voted in favour of the merger at the shareholders' meeting on October 12, 2017, stock exchange filing by Idea Cellular stated.

Other reports by Iphone Fresh

Discuss This Article