RCom- Aircel merger announcement imminent
According to certain media reports, RCom- Aircel merger announcement is a done deal and announcement on the same could be made soon. This deal has been in the pipe line since more than 6 months but finally it is likely to be completed.
All the required due diligence has been catered to by both the respective parties for the deal. RCom will demerge its wireless business and merge it with Aircel. This USD 6- billion merger would be the first merger where two entities with pan-India presence are coming together to take on the other bigger rivals.
RCom and Aircel together will be the third largest telecom company in the country with more than 18 crore subscribers becoming a formidable force to take on Bharti and Vodafone for the top spot. The new entity, which is in the works, will hold spectrum across all allocated bands providing a gamut of services like 2G;3G & 4G.
As per the terms of the merger, RCom will hive off its wireless business into a separate arm, a special purpose vehicle, in form of a slump sale, leaving behind the tower and overseas arms. The arm, in turn, will get merged into the mobile business of Maxis-owned Aircel. Both the partners will have 50:50 ownerships of this newly formed entity that will remain unlisted in initial years and is likely to operate under a new brand name.