Devesh
Core Member
Vodafone Group and Aditya Birla Group are likely to make an announcement on the mega merger of the former's Indian arm and Idea cellular as early as this week, according to a Telegraph report. Under the 21 billion euro deal, both the companies would hold equal stake in the merged entity.
“The structure a “face-saving” move to preserve Birla family pride – under a simpler deal they would be the junior partner in a joint venture,” the publication reported citing sources.
Vodafone Group plans to deconsolidate its Indian subsidiary from its accounts, in a move to take its debts off the main company balance sheets, the report said.
The mega merger would create a new market leader better able to contest a brutal price war with 42 per cent market share. The entity would be able to compete with the likes of Bharti Airtel and Reliance Jio.
Business Standard separately reported that Vodafone has agreed to Birla's demand that Kumar Mangalam Birla would become the chairman of the merged entity. The equity value of both the companies has been estimated at Rs 40,000 crore each while the combined entity would have debt of approximately Rs 89,000 crore.
Telecom News | Latest Telecom Industry News, Information and Update: ET Telecom
“The structure a “face-saving” move to preserve Birla family pride – under a simpler deal they would be the junior partner in a joint venture,” the publication reported citing sources.
Vodafone Group plans to deconsolidate its Indian subsidiary from its accounts, in a move to take its debts off the main company balance sheets, the report said.
The mega merger would create a new market leader better able to contest a brutal price war with 42 per cent market share. The entity would be able to compete with the likes of Bharti Airtel and Reliance Jio.
Business Standard separately reported that Vodafone has agreed to Birla's demand that Kumar Mangalam Birla would become the chairman of the merged entity. The equity value of both the companies has been estimated at Rs 40,000 crore each while the combined entity would have debt of approximately Rs 89,000 crore.
Telecom News | Latest Telecom Industry News, Information and Update: ET Telecom
