Reliance Communications-Aircel merger will create a subscriber base of 190 million with Bharti Airtel having a subscriber base of 251 million, followed by Vodafone with 198 million and Idea Cellular with subscriber base of 175 million.
Reliance Communications(RComm) board on Wednesday approved merger with Aircel, according to CNBC TV 18 reports. The merger with Aircel by the Reliance Group company led by Anil Ambani comes after the launch of Reliance Jio by Reliance Industries. The merger will create a subscriber base of 190 million with Bharti Airtel having a subscriber base of 251 million, followed by Vodafone with 198 million and Idea Cellular with subscriber base of 175 million.
The media reports further said that the Reliance Communication and Aircel merger joint venture will create net worth of Rs 35,000 crore and will have a debt of Rs 28,000 crore. The equities stand at Rs 7,800 crore.
Both the companies will put in Rs 14,000 of debt each into the new entity and the management of RComm and Aircel will hold 50 per cent cent stake each.
Reliance Communication has spent Rs 5,384 crore in the 850 MHZ space. Share price of the company on Wednesday ended 2.72 per cent up at Rs 51.05. The announcement came after market hours.
Chandan Taparia, analyst with Anand Rathi Financial Services said, “The move will increase the subscriber base of Reliance Communications, which is positive for the company.” He is bullish on Reliance Communication shares and believes if it crosses Rs 55 in coming sessions, then it can touch Rs 70 in the upcoming quarters.
Reliance Communications, Aircel and MTS together will have over 18 crore customers in India. The merger is likely to be renamed and the entire merger process will take six months, according to reports
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.
With inputs from The Money Control and The Financial Express
Reliance Communications(RComm) board on Wednesday approved merger with Aircel, according to CNBC TV 18 reports. The merger with Aircel by the Reliance Group company led by Anil Ambani comes after the launch of Reliance Jio by Reliance Industries. The merger will create a subscriber base of 190 million with Bharti Airtel having a subscriber base of 251 million, followed by Vodafone with 198 million and Idea Cellular with subscriber base of 175 million.
The media reports further said that the Reliance Communication and Aircel merger joint venture will create net worth of Rs 35,000 crore and will have a debt of Rs 28,000 crore. The equities stand at Rs 7,800 crore.
Both the companies will put in Rs 14,000 of debt each into the new entity and the management of RComm and Aircel will hold 50 per cent cent stake each.
Reliance Communication has spent Rs 5,384 crore in the 850 MHZ space. Share price of the company on Wednesday ended 2.72 per cent up at Rs 51.05. The announcement came after market hours.
Chandan Taparia, analyst with Anand Rathi Financial Services said, “The move will increase the subscriber base of Reliance Communications, which is positive for the company.” He is bullish on Reliance Communication shares and believes if it crosses Rs 55 in coming sessions, then it can touch Rs 70 in the upcoming quarters.
Reliance Communications, Aircel and MTS together will have over 18 crore customers in India. The merger is likely to be renamed and the entire merger process will take six months, according to reports
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.
With inputs from The Money Control and The Financial Express
