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The government will approve the long-standing merger of Idea-Vodafone immediately after the Telecommunications Department (DoT) has completed all the statutory formalities, Minister of Telecommunications Manoj Sinha said today. "DoT has established rules for the merger and the acquisition. The merger of Idea Vodafone will be compensated without delay once DoT has completed all the legal formalities," Sinha told reporters on the sidelines. the inauguration of the Ericsson 5G test laboratory in Delhi.
Idea and Vodafone were waiting for the merger agreement – which will create India's largest telecommunications company – to be completed on June 30, 2018.
L & # 39; operation is expected to be finalized by mid-June, but the telecommunications department plans D 'after sources, Vodafone merged in 2015 its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services. now called Vodafone India
The DoT at that time asked Vodafone to clear the OTSC dues of a value of Rs 6,678 crore but the company challenged it in front of the court. Following the order of the Supreme Court, Vodafone had only paid Rs 2,000 to clear the transaction. The DoT now wants Vodafone to clear the pending amount before it is merged with Idea Cellular.
The application will add to the bank guarantee of about Rs 2,100 crore that DoT will ask Idea for the unique spectrum charges. It is proposed that the merged entity be named Vodafone Idea Limited if it is approved by the shareholders of Idea Cellular. It is estimated that over 40 the number of mobile customers crore from day 1 and 41% of market share for the combined entity.
Vodafone Group and existing developers of Idea will hold 45.1% and 26% of the share capital of the amalgamated company, respectively, and the remaining 28.9% will be held by public shareholders.
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