Markets regulator Sebi has sought status update from stock exchanges about the 'no-objection' sought by Aditya Birla Group firm Idea Cellular regarding its proposed merger with Vodafone Plc's Indian unit.
Markets regulator Sebi has sought status update from stock exchanges about the ‘no-objection’ sought by Aditya Birla Group firm Idea Cellular regarding its proposed merger with Vodafone Plc’s Indian unit. Without disclosing details, Sebi said that “clarifications (are) awaited from exchanges” on the proposed Idea-Vodafone merger.
As per the latest weekly update of draft scheme of arrangement filed with Sebi, the markets regulator has said clarifications are awaited on the proposed merger as on June 2. The next update would be available on June 12. The Securities and Exchange Board of India (Sebi) had last received a communication from Idea on June 1.
Last month, the market regulator had sought clarification from Idea regarding its proposed merger. Idea had sought approval from Sebi in April.
In March, Vodafone India and Idea Cellular announced merger of their operations to create the country’s largest mobile phone operator worth more than USD 23 billion with a 35 per cent market share. As part of the proposal, the British firm will own 45.1 per cent of the merged entity while the Aditya Birla group, Idea’s parent company, will hold 26 per cent after paying Rs 3,874 crore for a 4.9 per cent stake.
The remaining 28.9 per cent will be held by other shareholders. Besides, the companies approached the Competition Commission of India (CCI) last month regarding the proposed merger and are awaiting the fair trade regulator’s nod in this regard.
Earlier, Idea had said a joint notification has been filed with the CCI and the Scheme of Arrangement has been filed with Sebi and stock exchanges for their approvals.