A couple of months after the talks on merging the two top telecom operators, Vodafone India and Idea cellular announced merger at its meeting held today on March 20, 2017. The Board of Directors of Idea Cellular approved amalgamation of Vodafone India Limited (VIL) and its wholly owned subsidiary Vodafone Mobile Services Limited (VMSL) with Idea.
Vodafone And Idea Cellular Announced Merger
In the proposed merger, the promoters of Idea will hold 26% of Idea and the balance 28.9% will be held by the public. The Board of the Company has approved the execution of an Implementation Agreement amongst Idea and the Promoters of Idea, VIL, VMSL, Vodafone and Vodafone International Holdings BV.
The Board of the Company has approved the execution of a Shareholders’ Agreement amongst Idea, Promoters of Idea, Vodafone and Vodafone International Holding BV, which will be effective only upon the amalgamation becoming effective.
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Addition!
The merger needs necessary approvals of Shareholders, creditors, SEBI, Stock Exchanges, the Competition Commission of India, the Department of Telecommunications (DoT), the Foreign Investment Promotion Board, the Reserve Bank of India and other governmental authorities.
Vittorio Colao, Chief Executive, Vodafone Group Plc. said;
The combination of Vodafone India and Idea will create a new champion of Digital India founded with a long-term commitment and vision to bring world-class 4G networks to villages, towns and cities across India. The combined company will have the scale required to ensue sustainable consumer choice in a competitive market and to expand new technologies – such as mobile money services – that have the potential to transform daily life of every Indian.
Kumar Mangalam Birla, Chairman, Aditya Birla Group said;
The Aditya Birla Group will then own 26 percent and has the right to acquire more shares from Vodafone under an agreed mechanism with a view to equalizing the shareholdings over time. For Idea shareholders and lenders who have supported us thus far, this transaction is highly accretive, and Idea and Vodafone will together create a very valuable company given our complementary strength.
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