Vodafone, Idea in talks for merger

Vodafone, Idea in talks for merger
In a consolidation that could mark the emergence of the biggest player in the telecom space, Vodafone and Aditya Birla group-controlled Idea Cellular have said that they are in talks for a merger. The merger, if it takes place, will give the combined entity a market share of around 43%, pipping Bharti Airtel, which currently has a share of 33%.

“Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding its 42% stake in Indus Towers) and Idea. Any merger would be effected through the issue of new shares in Idea to Vodafone,” a statement said. “It would result in Vodafone deconsolidating Vodafone India,” Vodafone said.

There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction, the company added. Idea, on its part, stated that the talks are based on equal rights for both the companies. “As part of enhancing stakeholder value, the company has been in preliminary discussions with Vodafone.

However, it is important to mention that the fundamental premise of preliminary discussion is based on equal rights between Aditya Birla group and Vodafone in the combined entity,” Idea Cellular said. Shares of Idea zoomed nearly over 20% following reports of the likely merger and ended the trading session with a gain of 25.9% at Rs 97.95 with volumes of 1.53 crore shares. At the NSE, the company’s shares gained 25.64% (Rs 20) to end at Rs 98 with volumes of 15.48 crore shares.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry