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Last Updated : Jul 20, 2016 01:33 PM IST | Source: CNBC-TV18

RComm-Aircel merger may conclude next week

CNBC-TV18 learns that the two companies, in a 50-50 deal, will together infuse Rs 5,000 crore of equity funding in the merged entity.

The merger between Anil Ambani-led telco Reliance Communication and Maxis-run Aircel Wireless Business announced earlier this year is likely to conclude next week.

CNBC-TV18 learns that the two companies, in a 50-50 deal, will together infuse Rs 5,000 crore of equity funding in the merged entity.

With a net worth of approximately Rs 50,000 crore, both RCom and Aircel are likely to transfer Rs 14,000 crore debt to the merged entity.

The deal, which was to materialise in May, was delayed by a month due to a disagreement over debt component. It was for the second time the companies had extended the discussion period for the merger last month.

Not just this Reliance Communicaton is gearing up for a mega restructuring plan. Kritika Saxena reports about the two deals involved. One is the real estate demerger, where the assets valued at Rs 12,000 crore will be demerged into a separate entity called Reliance Properties.

Another is where US private equity firm Brookfield Asset Management is interested in the company’s tower business valued at Rs 18,900 crore.

This demerger and sales process will lead to a debt reduction of 35 percent for Reliance Communication.
First Published on Jul 20, 2016 11:54 am
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