Home
Telecom
Telecom News
Idea Gets NCLT Nod for Merger With Vodafone

Idea Gets NCLT Nod for Merger With Vodafone

By Press Trust of India | Updated: 12 January 2018 16:29 IST

Highlights

Idea Cellular received the NCLT approval on Thursday
NCLT needs to approve Vodafone appeal too for the merger to go through
The final nod for the merger will be needed from DoT

The National Company Law Tribunal has approved the proposed merger between Idea Cellular and Vodafone - a move that brings both the companies closer to culminating the deal.

"We wish to inform you that the Hon'ble National Company Law Tribunal, bench at Ahmedabad, vide its order dated January 11, 2018 has sanctioned the composite scheme of amalgamation and arrangement among Vodafone Mobile Services Limited and Vodafone India Limited and Idea Cellular Limited...," Idea Cellular said in a regulatory note.

Both the groups can go ahead for the final approval for merger from the Department of Telecom after Vodafone's appeal for the scheme also gets NCLT nod.

As per latest data published by sector regulator TRAI, Idea and Vodafone jointly have over 40 crore mobile subscribers and together account for the largest share in Indian telecom segment. Vodafone is expected to hold around 47.5 percent stake in the merged entity and rest will be owned by Idea and promoter Aditya Birla Group.

The proposed merger of Vodafone India and Idea will create an entity with a revenue of around Rs. 77,500-80,000 crores besides eliminating duplication of spectrum and infrastructure capex, as per India Ratings and Research.

Further, the spectrum of Vodafone India in seven circles and that of Idea in two, whose permits are expiring in 2021-22, is together valued at around Rs. 12,000 crores as per last auction price. These permits are not in common circles, and hence there could be potential spectrum capex synergies between the two companies, as per the rating agency.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.