Reliance Communications, Aircel in Talks to Merge Mobile Business

Advertisement
By Indo-Asian News Service | Updated: 23 December 2015 10:25 IST
Reliance Communications, Aircel in Talks to Merge Mobile Business
Industrialist Anil Ambani-led Reliance Communications (RCom) on Tuesday said it has initiated talks with the promoters of Aircel to combine the wireless business of the two companies, with synergies in investments and returns.

A pact for 90-day exclusive talks has been initiated with Aircel's majority owner, Malaysia's Maxis Communications, and Sindya Securities and Investments for the potential merger, RCom said in a statement.

"The potential combination will exclude RCom's towers and optical fibre infrastructure, for which RCom is proceeding with an asset sale," said the statement.

"The discussion are non-binding in nature. Any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders' and other third party approvals. Hence, there is no certainty that any transaction will result."

Advertisement

Last month, RCom entered a major pact to acquire the Indian business of Russia's Sistema, which operates under the 'MTS' brand, in a unique stock-cum-spectrum-fee payment deal.

Advertisement

According to sources, if the deal happens, RCom-Aircel-MTS wireless combo will have over 150 million customers in India and it will hold hold close to 20 percent of the total spectrum - highest in country - in virtually every band currently available to private players.

RCom Aircel MTS wireless combo to benefit from substantial capex and opex synergies

Advertisement

"As per the deal being negotiated, RCom shareholders will receive free listed shares in the combined wireless entity. This apart, the debt of Rs.10,000 crores will be transferred to the separate listed combined entity," a source said.

"This will include the deal with MTS. Also, the monetisation of the tower and fiber assets will continue. Once these deals go through, RCom will become debt-free."

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. OTT Releases This Week: Saare Jahan se Accha, Tehran, Alien Earth, and More
  2. Oppo K13 Turbo Pro With Built-in Cooling Fan Goes on Sale in India
  1. NASA Artemis II Orion Spacecraft Prepares for Historic Crewed Moon Mission with Safety Systems Installed
  2. Astronomers Discover "Cosmic Grapes" Galaxy Packed with Star-Forming Clumps in the Early Universe
  3. Metro In Dino OTT Release Date Reportedly Revealed Online: Know Where and When to Watch it Online
  4. Red Letter Now Streaming Online: Know When and Where to Watch This Short Film
  5. Oppo K13 Turbo Pro With Built-in Cooling Fan Goes on Sale in India: Price, Offers
  6. Scientists Apply Stephen Hawking's Theory to Propose Detectable ‘Black Hole Morsels’ in Space
  7. China Advances Guowang Internet Constellation with Latest Satellite Launch
  8. ESA’s Mars Express Discovers Deep Valleys and Frozen Features Hinting at Mars’ Icy Past
  9. New Physics-Based Model Sheds Light on How Deep Neural Networks Learn Features
  10. Cosmic Visitor: 4.56-Billion-Year-Old Meteorite Strikes into Georgia Home
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.