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The government gave final approval to the merger of Vodafone and Idea Cellular which creates India's largest mobile operator with about 35% market share and nearly 430 million subscribers [19659002]. Airtel, the current market leader with 344 million customers from its leading position.
A senior DoT official confirmed that the final agreement was given to the amalgamation today and the two entities will now inform the Registrar of Companies (RoC) of the various approvals received, ending the last stage of formalities
The approval comes with the riders that the merged entity will have to comply with the decisions of the Telecommunications Court and other courts.
Telecom (DoT) gave a conditional boost to the merger of these companies on July 9 and asked them to respond to merger registration requests.
Follo Inversely, Idea Cellular and Vodafone India, at the beginning of the week, made a joint payment of Rs 7,268.78 crore "under protest" to the government. This included Rs 3,926,34 crore paid in cash and Rs 3,342,44 crore provided as bank guarantees.
The combined power of Idea and Vodafone will result in a telecom mastodon worth more than $ 23 billion (or more than Rs 1.5 lakh crore), with 35
Kumar Mangalam Birla will be the non-executive chairman and Balesh Sharma the new CEO of the merged entity, which will remain on the register.
support the efforts of indebted companies Idea Cellular and Vodafone to face intense competition in the market where the entry of Reliance Jio – supported by the richest man in India Mukesh Ambani – led to a deadly tariff war.
Vodafone Aditya Birla Group will have 26% and Idea shareholders 28.9%.
Shares of Idea Cellular closed up 3.64% on BSE at Rs 56.95 the piece
The Aditya Birla Group has the right to acquire up to 39 to 9.5% additional participation of Vodafone under an agreed mechanism to equalize the dividends over time.
If Vodafone and the Aditya Birla Group's interests in the combined company are no longer equal after four years, Vodafone will sell shares of the merged company to equalize its participation in the Aditya Birla group over the five-year period. next
Vodafone Group CEO Vittorio Colao said yesterday that the merger should be finalized in August. [19659002"InIndependentCompetitionhasbeensupportedbytheDeliveryConnectionoftheVodafoneIndiaandIdeaCellularAssociationthatwehavetheintentionofclosingbeforetheindexofAugusttoallowustodealwiththispowerfulissues"Colaoavaitdit
This is published unedited PTI stream.
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