IDEA SAYS BOARD APPROVES SCHEME OF AMALGAMATION OF VODAFONE INDIA AND ITS UNIT VODAFONE MOBILE SERVICES WITH COMPANY: REUTERS
I AM PLEASED AND HONOURED TO BE THE CHAIRMAN OF THE NEW COMPANY: KUMAR MANGALAM BIRLA AFTER VODAFONE INDIA-IDEA MERGER.
Kumar Mangalam Birla owned Idea Cellular said its Board has approved of a merger with Vodafone India and its wholly owned subsidiary Vodafone India Mobile Services, which will create India’s largest mobile phone company with about 400 million customers, 35% customer market share and 41% revenue market share.Vodafone India’s business barring its investments in Indus Towers will vest in the new entity, which will be renamed at a later stage, the companies said a statement Monday.
Vodafone will own 45.1% in the combined entity after transferring 4.9% to the promoters of Idea Cellular for Rs 3,874 crore in cash post the merger. Kumar Mangalam Birla and other promoters of Idea Group will hold 26% and the rest will be owned by the public, said the statement.While the merger will result in creation of the largest telecom entity with pan-India 3G and 4g footprint, it will have sufficient spectrum to compete with major operators while offering attractively priced mobile services to consumers, specially in the wake of competition from Reliance Jio.