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Aircel and Reliance Communications Going for Merge Business to Build a New Brand [ Current News (Concise) ]


Reliance Communications and Aircel has signed agreement to merge their wireless telecom business to create the 3rd biggest mobile phone operator of the with asset base of more than Rs 65,000 crore with 50 per cent partnership each.

Image of Aircel and Reliance

Image of Aircel and Reliance

Image of Aircel and Reliance

Key facts:

  • The new company will have 187.64 million subscribers and become 3rd largest network after Bharti Airtel Ltd with 255.7 million and Vodafone India Ltd with 199.4 million.
  • Both the countries will have equal participation in the board.
  • With this merger Reliance Communications will keep all the non-wireless business, reduce its debt by Rs20, 000 crore, or unevenly 48% of the Rs41, 362.1 crore outstanding up to the 31 March201, whereas Aircel will reduce debt by Rs4, 000 crore, upon completion of the transaction.
  • Reliance Communications and Maxis will fill additional equity into the merged company to fund growth after the merger is completed and both the companies has started its preparation by communicating with the investors of leading company.
  • The merger will be the second largest spectrum portfolio across the country with bands such as 850MHz, 900MHz, 1800MHz and 2100MHz.
  • The new company will have capital expenditure and operational expenditure synergies with a net present value (NPV) of Rs20, 000 crore.
  • Aircel have invested Rs. 35,000 crore in India, one of the largest foreign investments ever by it.
  • The new company will offer nationwide 4G LTE services in the sub-1GHz band, under existing nationwide spectrum sharing of Reliance Communications and intra-circle roaming arrangements with Reliance Jio Infocomm Ltd.

- Published on: September 15, 2016