Idea Cellular has filed an application before the National Company Law Tribunal (NCLT), Ahmedabad Bench, for approval of the merger of Vodafone India and Vodafone Mobile Services with Idea Cellular.
Idea Cellular has received approvals from Competition Commission of India on July 24, 2017 and the Stock Exchanges/SEBI on August 4, 2017 and in accordance with the terms thereof, Idea Cellular has filed an application before the National Company Law Tribunal, Ahmedabad Bench.
Vodafone announced to combine its subsidiary Vodafone India (excluding its 42% stake in Indus Towers) with Idea, which is listed on the Indian Stock Exchanges to create the largest telecom operator in India. This is the merger of equals with joint control of the combined company between Vodafone and the Aditya Birla Group, governed by a shareholders’ agreement.
Vodafone will own 45.1% of the combined company after transferring a stake of 4.9% to the Aditya Birla Group for circa Rs. 39 billion in cash concurrent with completion of the merger. The Aditya Birla Group will then own 26% and has the right to acquire more shares from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time. The transaction is expected to close during calendar year 2018, subject to customary approvals.