Expect to announce merger with Aircel soon: Reliance Communications

By: |
New Delhi | Published: June 23, 2016 5:09:18 PM

Having extended talks with Aircel twice, Reliance Communications (RCom) today said it expects to announce the merger with the company...

It said however that any transaction will be subject to regulatory, shareholders' and other third party approvals. "Hence, there is no certainty that any transaction will result. (PTI)It said however that any transaction will be subject to regulatory, shareholders’ and other third party approvals. “Hence, there is no certainty that any transaction will result. (PTI)

Having extended talks with Aircel twice, Reliance Communications (RCom) today said it expects to announce the merger with the company “very shortly” after the signing of a “binding definitive” pact.

“RCom and Maxis Communications Berhad (MCB) and Sindya Securities and Investments Pvt Ltd (Sindya), the shareholders of Aircel Ltd (Aircel), expect to sign binding definitive documentation and announce the proposed transaction for the combination of the Indian wireless business of RCom and Aircel very shortly,” the company said in a BSE filing.

Also Read: Reliance Communications to use Jio’s network from next week

It said however that any transaction will be subject to regulatory, shareholders’ and other third party approvals. “Hence, there is no certainty that any transaction will result.”

Earlier last month, the company and Aircel had decided to extend by 30 days the discussion period for their possible merger.

This was for the second time the companies had extended the discussion period for the merger. The telcos previously on March 22 had extended the merger talks by 60 days.

Last year in December, the two firms announced that they have entered 90-day ‘exclusivity period’ for the deal that will exclude RCom’s tower and optical fibre assets for which a separate sale process is ongoing, the company said in a statement.

RCom and Aircel talks, if successful, would lead to a combined entity holding 19.3 per cent of the total spectrum allocated to the industry – highest in the country by an entity.

The proposed combined entity will hold spectrum across all allocated bands — 800 Mhz, 900 Mhz, 1800 Mhz, 2100 Mhz and 2300 MHz — for 2G, 3G and 4G services.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

FinancialExpress_1x1_Imp_Desktop