Idea Cellular and Vodafone merger
We should know few things about Idea Cellular and Vodafone merger
The Idea Cellular board on Monday approved the merger of Vodafone India and its subsidiary Vodafone Mobile Services with itself, in the process creating the country’s largest telecom entity. The merger will be effected through the issue of new shares in Idea to Vodafone. The name of the new merged company will also be decided later.
If Vodafone and the Aditya Birla Group’s shareholding in the combined company are not equal after four years, Vodafone will sell down shares in the combined company to equalise its shareholding to that of the Aditya Birla Group over the following five-year period.
Prior to completion of the transaction, Vodafone and Idea intend to sell their standalone tower assets. Idea has 11.15% and Vodafone has 42% stake in Indus Towers.
PTI has reported that Kumar Mangalam Birla will be the new chairman of the merged entity, while Vodafone will appoint the chief financial officer.
The merged company would become the largest telecom operator in India with almost 400 million customers, 35% customer market share and 41% revenue market share. The brand strategy of the combined company would be developed in due course.
Vodafone and Idea anticipate that the merger completion will take place during the 2018 calendar year.