Reliance Communication gets shareholder nod for merger with Aircel

Reliance Communication gets shareholder nod for merger with Aircel
Reliance Communications (RCom) has received approval from shareholders for its merger with Aircel. The merger of the companies would result in creating the third-largest operator and rank amongst top 4 in the country on customer base and revenues.

Shareholders of RCOM at their meeting convened pursuant to the order of the National Company Law Tribunal (NCLT), have on April 24, approved with 99.99% majority for the scheme of arrangement for demerger of the wireless division of the company and Reliance Telecom (RTL), a wholly-owned subsidiary of the Company, into Aircel and Dishnet Wireless. The scheme was also approved by shareholders of RTL at their meeting held on April 24 pursuant to the order of the NCLT, RCOM said.
 
Shareholders of Aircel had already approved the merger at their meeting held on April 22nd, 2017, convened under the order of the NCLT.
 
RCOM and Maxis Communications Berhad (MCB), promoters of Aircel, had, on September 14, 2016, signed definitive documents for the merger of their Indian wireless businesses. The merged company will be one of India's largest private sector companies, with an asset base of over Rs 65,000 crore ($9.7 billion) and net worth of Rs 35,000 crore ($5.2 billion). RCOM and MCB will each hold a 50% stake in the merged entity, with equal representation on the board of directors and all committees. RCOM's overall debt will reduce by Rs 20,000 crore ($3 billion) or over 40% of its total debt, and Aircel's debt will reduce by Rs 4,000 crore ($600 million), upon completion of the transaction in 2017.

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