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Idea Cellular approaches NCLT over approval of merger with Vodafone

Idea Cellular approaches NCLT over approval of merger with Vodafone
A man walks past a shop displaying Idea Cellular Ltd's logo on its shutters in Mumbai April 28, 2014. REUTERS/Danish Siddiqui/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH 'BUSINESS WEEK AHEAD 24 OCT' FOR ALL IMAGES

New Delhi [India]: Idea Cellular Ltd. on Monday filed an application before the National Company Law Tribunal ‘s (NCLT) Ahmedabad Bench, seeking approval for its merger with Vodafone India Ltd. and Vodafone Mobile Services Ltd.

The application was filed after Idea cellular received approvals from the Competition Commission of India on 24 July, and the Securities and Exchange Board of India ( SEBI) on August 4, in accordance with the terms thereof.

Earlier in March, telecom majors Idea Cellular and Vodafone India Ltd. (VIL) announced the acceptance of their merger, with Kumar Mangalam Birla as the Chairman of the new entity. This is paving the way for five major players, namely – Vodafone-Idea, Bharti Airtel, RJio, RCom-Aircel-Sistema (assuming RCom – Aircel merger goes through), BSNL – MTNL.

The merger will facilitate VIL and VMSL’s (Vodafone Mobile Services Ltd.) entire business to be vest in the company, excluding VIL’s 42 percent share in Indus Towers. The merger will come into effect after new shares are issued in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India.

The two parties believe that the merger will enhance pan India 3G/4G footprint, thereby accelerating the Narendra Modi-Government’s ‘ Digital India’ initiative.

Furthermore, it is believed to help in leveraging customer affinity towards the two brands in the telecom spectrum.
(ANI)