Technoglitch
Core Member
: Telecom firms Reliance Communications Ltd (R-Com) and Aircel Ltd are likely to complete their merger by the end of June, a top Reliance Group executive has said.
The executive, who asked to be not named, said the merged entity, which will be India’s third largest telecom firm by subscribers, will save about Rs.2,500 crore a year through synergies between the two operations. The combined entity is expected to have Ebitda (earnings before interest, tax, depreciation and amortization) of Rs.5,000-6,000 crore in the next financial year with a revenue of Rs.25,000 crore.
The Reliance executive added a strategic investor will invest Rs.3,000 crore in the entity.
In December, R-Com entered into exclusive talks with Aircel for a potential merger, a month after it announced that it would buy the local unit of Russia’s Sistema JSFC.
“R-Com and Aircel will have synergy in terms of both revenue and cost. Revenue synergy will be attained primarily through increased market share and better quality and quantity of spectrum,” Dhamija said. He added that cost synergy will also come to play as 7%-11% operating expenditure will be shaved off if the integration goes well.
R-Com, Aircel merger by June-end - Livemint
The executive, who asked to be not named, said the merged entity, which will be India’s third largest telecom firm by subscribers, will save about Rs.2,500 crore a year through synergies between the two operations. The combined entity is expected to have Ebitda (earnings before interest, tax, depreciation and amortization) of Rs.5,000-6,000 crore in the next financial year with a revenue of Rs.25,000 crore.
The Reliance executive added a strategic investor will invest Rs.3,000 crore in the entity.
In December, R-Com entered into exclusive talks with Aircel for a potential merger, a month after it announced that it would buy the local unit of Russia’s Sistema JSFC.
“R-Com and Aircel will have synergy in terms of both revenue and cost. Revenue synergy will be attained primarily through increased market share and better quality and quantity of spectrum,” Dhamija said. He added that cost synergy will also come to play as 7%-11% operating expenditure will be shaved off if the integration goes well.
R-Com, Aircel merger by June-end - Livemint
