NEW DELHI: Reliance Communications (RCOM) Thursday said it expects to shortly sign a binding merger deal with the founders of Aircel, for combining the wireless businesses of both the telecom companies.
Aircel is 74% owned by Malaysia's Maxis Communications Berhad (MCB) with the rest with Sindya Securities and Investments Pvt. Ltd. .
RCom's stock rose sharply on the news, and was up 5.2% at Rs 50.20 on the Bombay Stock Exchange.
Both the parties have been discussing a deal under which RCom and Aircel's promoters will hold 50% each in a merged entity, which would be renamed and could emerge as India's No. 3 carrier by users, ahead of Idea Cellular and trailing market leader Bharti Airtel and Vodafone India.
A merger would help both companies stay relevant in an intensely competitive market as India. Individually, the companies - both struggling with debt and falling market share - have no way of challenging their bigger rivals.
RCom says to shortly sign Aircel merger deal | ET Telecom
Aircel is 74% owned by Malaysia's Maxis Communications Berhad (MCB) with the rest with Sindya Securities and Investments Pvt. Ltd. .
RCom's stock rose sharply on the news, and was up 5.2% at Rs 50.20 on the Bombay Stock Exchange.
Both the parties have been discussing a deal under which RCom and Aircel's promoters will hold 50% each in a merged entity, which would be renamed and could emerge as India's No. 3 carrier by users, ahead of Idea Cellular and trailing market leader Bharti Airtel and Vodafone India.
A merger would help both companies stay relevant in an intensely competitive market as India. Individually, the companies - both struggling with debt and falling market share - have no way of challenging their bigger rivals.
RCom says to shortly sign Aircel merger deal | ET Telecom
