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The proposed merger of Idea Cellular and Vodafone India to create the company’s largest telecom operator has moved closer to reality, with the companies receiving approval from the National Company Law Tribunal’s (NCLT) Ahmedabad Bench.
The NCLT, vide its order dated January 11, has sanctioned the scheme of amalgamation and arrangement among Vodafone Mobile Services, Vodafone India and Idea Cellular, Idea said in a regulatory filing. “Most of the approvals for the merger are already in place. We are now awaiting approvals from NCLT and DoT,” Sunil Sood, Vodafone India MD and CEO, had told BusinessLine in October.
Last year, Vodafone and Idea, which are currently India’s No 2 and 3 telcos, had agreed to merge their operations to create the country’s largest telecom operator worth more than $23 billion, with 35 per cent market share and 387 million users.
Vodafone will own 45.1 per cent stake in the merged entity after transferring about 4.9 per cent to the promoters of Idea and their affiliates, for ₹3,874 crore in cash. Idea’s promoters will hold 26 per cent stake in the company; the remaining will be held by the public.
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