Moneycontrol
Sep 15, 2016 07:07 PM IST | Source: CNBC-TV18

Reliance Communications-Aircel merger deal sealed: Sources

The much-anticipated merger deal between Reliance Communications and Aircel has been inked, sources have told CNBC-TV18, and an announcement is expected shortly.

The much-anticipated merger deal between Reliance Communications and Aircel has been inked, sources have told CNBC-TV18, and an announcement is expected shortly.

Sources say that the deal, in which Reliance Communications will demerge its wireless business and merge it with Aircel, has been tied up following a months-long process.

R-Comm and Aircel will hold 50 percent stake each in the combined entity and both companies will transfer debt worth Rs 14,000 crore each. The entity will be listed at a later date.

The combined entity will also have net worth of Rs 35,000 crore and debt of Rs 28,000 crore.

In terms of subscribers, a Rel Comm-Aircel combine will be the country's second largest telecoms player, with 19 crore users. Airtel (25 crore), Vodafone (19.8 crore) and Idea (17.5 crore) will comprise the top four players.

However, in revenue market share, the combined business will trail Idea with 10 percent share compared with Idea's 20.1 percent. Airtel and Vodafone will have revenue market share of 31.6 percent and 22.6 percent.
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