In the biggest consolidation deal in India's telecom sector, Anil Ambani-led Reliance Communications and Maxis Communications, promoters of Aircel, on Wednesday said they would merge their wireless businesses to form the fourth-largest telecom operator in the country.
R-Com will demerge its wireless business and transfer it to the new entity, while the standalone business will focus on the enterprise segment and data centre businesses. Sistema will continue to hold 10 per cent in standalone R-Com. R-Com's shares ended the day three per cent higher at Rs 50.
R-Com will demerge its wireless business and transfer it to the new entity, while the standalone business will focus on the enterprise segment and data centre businesses. Sistema will continue to hold 10 per cent in standalone R-Com. R-Com's shares ended the day three per cent higher at Rs 50.
Both R-Com and Maxis will hold 50 per cent each in the new entity.
With 171 million subscribers and a revenue market share of over 11 per cent, the new entity will have a better shot at survival, as competitive intensity picks up.
With 171 million subscribers and a revenue market share of over 11 per cent, the new entity will have a better shot at survival, as competitive intensity picks up.
The new entity will have an asset base of over Rs 65,000 crore ($9.7 billion) and net worth of Rs 35,000 crore ($5.2 billion). It will enjoy substantial benefits of scale driving significant revenue growth, and capex and opex synergies with an NPV of read more..
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