Idea Cellular on Monday announced that its board has approved the merger of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services Limited with itself in the process creating the country's largest telecom entity.
Under the terms of agreement, the merger should be completed within 24 months.
Vodafone will own 45.1 percent of the combined company after transferring 4.9 percent to Idea's promoters or its affiliates for Rs 38.74 lakh crore in cash concurrent. Idea promoters will hold 26.1 percent of the company and the balance will be held by public," according to the filing.
the deal has been arrived at with an implied enterprise valuation of Vodafone India Rs 82,800 crore and that of Idea Cellular at Rs 72,200 crore.
It will be an all-share merger of Vodafone India (excluding Vodafone's 42 percent stake in Indus Towers) and Idea. The merger will be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India. For information : www.paceresearchindia.com and Call : 8817774774
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