Jan 12: The proposed merger between telecom service providers Idea Cellular and Vodafone India has been given the nod by the National Company Law Tribunal (NCLT). The approval has pushed forward both the companies towards executing the deal.
Idea Cellular has, in a regulatory filing, said that the National Company Law Tribunal bench at Ahmedabad, through an order of January 11, “sanctioned the composite scheme of amalgamation and arrangement among Vodafone Mobile Services Limited and Vodafone India Limited and Idea Cellular Limited.
With the nod coming about, Idea Cellular and Vodafone India would now look forward to an approval for merger from the Department of Telecom.
The two telecom giants, once merged, would create a conglomerate worth around Rs 80,000 crore in revenues. Further, the proposed merger, when it turns real, will also do away with spectrum duplication and infrastructure capex, said reports quoting a research agency.
The two companies jointly account for more than 40 crore mobile subscribers currently. With the merger coming up, Vodafone may pocket around 47.5 percent stake in the merged entity, while the remaining will be held by Idea and its promoter Aditya Birla Group.