Home » Tech

Idea-Vodafone announce merger; combined entity to be biggest teleco in India

20 March, 2017, 07:03 | Author: Nadine Todd

The merged company will be the largest with about 387 million users in the country.

Vodafone India and Vodafone Mobile Services have a combined turnover of about Rs 454 billion while Idea has a turnover of about Rs 360 billion.

A merger between the two companies will take the combined entity to the number one position in India in terms of subscribers at 387 million. The remaining stake will remain with the public.

- Mobile Internet connections (2G+3G+4G): Idea has 48.58 million, while Vodafone has 65 milllion, giving the combine entity a grand total of 113.5 million connections. The appointments of chief executive and chief operating officers will require approval of the boards of both the companies while Vodafone will have exclusive rights to appoint chief financial officer.

Vodafone and Idea are weighing options on excess airwaves-including selling or sharing them, people with knowledge of the matter said last month. The Board will include lndependent Directors.

Jio has made an impact with free voice calls and cut-price data services, forcing India's three biggest operators - Bharti Airtel (BRTI.NS), Vodafone and Idea - to slash prices and accept lower profits. On amalgamation of VMSL becoming effective, the company shall issue shares to VIL equal to 47 percent of post issue paid-up capital.

Vodafone could decide to sell part of its stake in the merged company, while the Birlas would likely offer to buy shares from other investors after the merger to bring their holding to about 26 percent, according to the people.

The promoters of Idea Cellular have the sole right to appoint the chairman.

Vodafone will hold 45.1% of the combined company after transferring a stake of 4.9% to the promoters of Idea for Rs 3874 crore in cash.

In a BSE filing Idea said, "The board of directors at its meeting held on March 20, 2017, have approved the scheme of amalgamation of Vodafone India Limited (VIL) and its wholly owned subsidiary Vodafone Mobile Services Limited (VMIL) with the company subject to necessary approvals". Vodafone has the right to appoint CFO of company.

More details about the deal are awaited.

Recommended:

  • World XI T20 squad to tour Pakistan in September

    World XI T20 squad to tour Pakistan in September

    A senior PCB official said it would be a "commonwealth XI" but a report in the Guardian referred to a World XI. He visited Pakistan in January and was given briefings on security arrangements for visiting sides.
    Manchester City vs Liverpool

    Manchester City vs Liverpool

    We usually win good games, but the bad games and the average games we need to be challenging too. "That is why I am so happy". The victory by Spurs ensured that Chelsea's lead at the summit of the EPL table is back to 10 points.

    Biren Singh government to face floor test today

    The protesters had cut off the two main highways - NH2 and NH 37 - depriving the state of essential commodities. It also said that the next round of talks will be held within a month.
  • Josh Jackson faces hometown Spartans Sunday

    Michigan State is now 21-5 in the second game of an NCAA Tournament weekend under Izzo, including 7-4 as the lower seeded team. Cassius Winston and Josh Langford both showed flashes this past year, but struggled with consistency - as most freshmen do.
    Progress On Dallas' 'Ghost' 911 Calls; Native Americans In Texas History

    Progress On Dallas' 'Ghost' 911 Calls; Native Americans In Texas History

    Taffet was disconnected and was placed on hold when he called back. "There's no excuse", she said during the interview. And so when those folks hung up, algorithmically, this went insane . "We have a new sheriff in town", Rawlings said.

    China warns U.S. to stay 'coolheaded' on North Korea

    In talks with Xi in Beijing, Tillerson said Trump places a "very high value" on communications with the Chinese president. Secretary of State Rex Tillerson with China's Xi Jinping at the Great Hall of the People in Beijing on March 19.
  • Xiaomi to launch offline preorder services for Note 4 this month

    Xiaomi to launch offline preorder services for Note 4 this month

    The company will also be selling the Redmi Note 4 at large format retailers in Delhi, Jaipur and Chandigarh from 16 to 21 March. Also, if you can remember, both Redmi 4 and Redmi 4A were accompanied by Redmi 4 Prime during the launch event in China.
    'Beauty And The Beast' makes over $170 million in opening weekend

    'Beauty And The Beast' makes over $170 million in opening weekend

    The Belko Experiment follows a group of American corporate types, who are locked in a high-rise office in Bogota, Colombia. Taking third place was Hugh Jackman's Logan , which brought in $17.5 million for a total of $184 million so far.

    Trump, Merkel try to sidestep differences in first meeting

    One German official telling Reuters that Merkel's been coached on the idea that Trump prefers to hear "clear positions" but with "few details".
  • London man killed after charging iPhone

    London man killed after charging iPhone

    Police Chief Craig Pattinson says,"We found an iPhone plugged into the extension cable and then the charger element in the bath". He also intends to write reports to Apple to look into such matters and at least attach warnings to avoid further incidents.

    Ex-intelligence official: Napolitano's British wiretapping claim 'didn't get it right'

    The White House's refusal to back down raised the stakes for Comey's appearance before the intelligence committee on Monday. The German chancellor's face said it all as she evidently couldn't hide her astonishment at what she had just heard.
    Srisaket Sor Rungvisai Upsets Chocolatito Gonzalez in FOTY

    Srisaket Sor Rungvisai Upsets Chocolatito Gonzalez in FOTY

    Gonzalez had Sor Rungvisai in trouble in the sixth when he followed up a thudding left to the body with a left to the jaw. The middleweight champion successfully defended his belts against Danny Jacobs Saturday night via unanimous decision.


Popular

Kentucky lawmakers approve charter school legislation
As CEO of the Northeast Charter Schools Network, the state association for charters, I'd like to set the record straight. Sometimes, the most precious words we can hear from the committee rooms of the state Legislature are "the no's have it".

Two confirmed dead in East Baltimore fire
People can also contact the Baltimore Police Department by texting tips to 443-902-4824 or using the Baltimore Police app. Davis believes the firebombing was related to a non-fatal shooting on Thursday night in the same area.

Americans deserve independent pick for Supreme Court
Supreme Court, Sen. "I can't dictate what the Democrats are doing, but I don't hear it [discussed] very much". When Neil Gorsuch appears before the judiciary committee for his confirmation hearing as nominee for the U.S.

House panel approves GOP health care plan
I don't agree with every decision the Democrats make, but I hardly agree with any decision Ryan and President Trump are making. DeSantis has called the bill "a work in progress", telling the Washington Post ,"I think we can probably be more aggressive".

Trump takes on media again, calls meeting with Merkel 'great'
Trump made the comment as the White House faced a new wave of backlash related to Trump's wiretapping accusations against Obama. Fox itself later disavowed the report, saying it "knows of no evidence of any kind" that Mr Trump had been under surveillance.