Inching a step closer to the mega merger, Reliance Communications (Rcom) and Aircel received their respective shareholders’ approval for the merger of the companies that would result in creating the third-largest operator.
The meetings were convened following a direction by the National Company Law Tribunal (NCLT). Aircel shareholders met on April 22 to approve the merger and that of RCom on Monday.
The company has already received approval from the Securities and Exchange Board of India, BSE Ltd, National Stock Exchange of India Ltd and Competition Commission of India for the proposed Scheme of Arrangement.
The merged entity will have the second-largest spectrum holding amongst all operators, totalling 448 MHz across 850 MHz, 900 MHz, 1800 MHz and 2100 MHz bands.
The merger was announced in September 2016 under which RCom and Aircel’s Malaysia-based promoters Maxis Communications Bhd will hold 50 per cent each in a newly created venture with equal representation on the board.
Following the merger, the company will have an asset base of more than Rs 65,000 crore and net worth of Rs 35,000 crore. Rcom’s overall debt, including the deferred spectrum payment liability, will be reduced by Rs 20,000 crore and Aircel’s debt will reduce by Rs 4,000 crore upon completion of the transaction.
A petition is being filed with the NCLT, Mumbai Bench, for approval of the said scheme. The proposed transaction is subject to other necessary approvals.