Reliance Communications and Aircel to be merged
Anil Ambani led Reliance Communications (RCom) has signed a deal with Maxis Communications Berhad (MCB) for merger of wireless businesses of Aircel Limited with itself.
The merger is considered as the largest-ever consolidation in the Indian telecom sector. The merged entity will be country’s fourth-largest phone company in terms of customers and revenue.
Key Facts
- The merged company will have second-largest spectrum holding amongst all operators in the country aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands.
- It will be one of India’s largest private sector companies, with an asset base of over $9.7 billion (Rs. 65,000 crore) and net worth of $5.2 billion (Rs. 35,000 crore).
- RCom and MCB will hold a 50% stake each in the merged entity, with equal representation on the Board of Directors and all Committees.
- The Company will be managed by an independent professional team under the supervision of the Board.
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Month: Current Affairs - September, 2016