The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Monday asked Idea Cellular to conduct a meeting of shareholders and creditors on October 12, seeking the approval of its merger with Vodafone India and Vodafone Mobile Services. The tribunal has appointed MH Shah, former chief justice of Bombay High Court, as chairman of the meeting. On August 8, Idea Cellular had filed an application for approval of the non-cash deal valued at around $23 billion. While the merger was announced in March, it was recently approved by the Competition Commission of India (CCI) and the Sebi.
The combined entity is expected to create a telco with nearly 400 million users with a 35% market share. As part of the proposal, Vodafone will initially hold 50% in the merged entity. Later, the British firm’s stake will reduce to 45.1% in the combined entity and the Aditya Birla group, the parent company of Idea, will hold 26% after paying Rs 3,874 crore for the 4.9% stake. The remaining 28.9% will be held by other shareholders.
Idea would have to submit a copy of scheme as approved by the NCLT to the exchanges; result of voting by shareholders for approving the scheme; statement explaining changes, if any, and reasons for such changes carried out in the approved scheme from the draft scheme and status of compliance with the observation letter of the exchanges.