The shareholders of Reliance Communications have approved the demerger of the wireless division of the company and Reliance Telecom into Aircel and Dishnet Wireless.
The shareholders of Aircel have also approved the merger at their meeting held on April 22, 2017.
Aircel will have equal stake by the company and the present shareholders of Aircel.
The company has already received approval from the Securities and Exchange Board of India, BSE Limited, National Stock Exchange of India Limited and Competition Commission of India for the merger.
The combined RCOM-Aircel company will be among the top 4 telecom operators in India. RCOM earlier acquired MTS.
The merged entity of RCOM and Aircel will be ranked amongst the top 3 operators by revenues in 12 important circles.
The merged entity will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands. The validity of spectrum holdings will be till 2033-36.
The asset base will be over Rs 65,000 crore or $10 billion with net worth of Rs 35,000 crore or $5.38 billion.
RCOM’s overall debt including the deferred spectrum payment liability will be reduced by Rs 20,000 crore or $3.07 billion.
Aircel’s debt will reduce by Rs 4,000 crore or $615 million.