Anil Ambani-led RCOM and Aircel to complete $6-billion merger by June End

swatkats

swatkats

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The Reliance executive said the new telecom firm, a 50:50 joint venture of R-Com and Aircel, will be unlisted and operate under a new brand name.
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Telecom firms Reliance Communications Ltd (R-Com) and Aircel Ltd are likely to complete their merger by the end of June.

The merged entity, which will be India’s third largest telecom firm by subscribers, will save about Rs2,500 crore a year through synergies between the two operations

Merged entity, which will be India’s third largest telecom firm by subscribers, will save about Rs.2,500 crore a year through synergies between the two operations. The combined entity is expected to have Ebitda (earnings before interest, tax, depreciation and amortization) of Rs.5,000-6,000 crore in the next financial year with a revenue of Rs.25,000 crore.

The Reliance executive added a strategic investor will invest Rs.3,000 crore in the entity.

In December, R-Com entered into exclusive talks with Aircel for a potential merger, a month after it announced that it would buy the local unit of Russia’s Sistema JSFC.

As part of the deal, R-Com will spin off its mobile business and this will merge with the mobile business of the Maxis-owned Aircel; Both R-Com and Aircel will transfer Rs.14,000 crore each of their debt to the new entity.


http://www.livemint.com/Industry/gx...-Communications-Aircel-merger-by-Juneend.html
 
The deadline for exclusive negotiations between both sides was extended for a month till June 22nd and officials are confident of ironing out the outstanding issues within the next 4 weeks. Sources say, both sides are currently finalising the various commercial and legal terms of engagement.

RCom and Aircel will each transfer Rs 14,000 crore of their debt into it. RCom has a gross debt of Rs 42,651 crore while it is Rs 23,436 crore for Aircel. Russia's Sistema will hold 10% in the listed RCom.

RCom's tower portfolio and its undersea cables arm Global Cloud XChange will be kept out of the ambit of the merger. Aircel has a gross debt of Rs 23,436 crore while it is Rs Rs 42,651 crore for RCom.

Once the synergies get fully panned out post merger, the plan is to bring on board another foreign investor within a year who will infuse $500 million (Rs 3350 crore at an exchange rate of Rs 67 to a dollar). One of the sources mentioned above said Sistema could further develop the partnership by also investing in this new entity, while another said preliminary feelers have gone out to a few US based investors. This however could not be independently verified.

"The merger of telecom assests of SSTL with Rcom is an independent process. The said process is on track which includes taking due legal and regulatory approvals from the relevant authorities. It is also significant to note that there is no legal right or commitment from the shareholders of SSTL to participate in RCOM's deal with Aircel," said the MTS spokesperson.



http://economictimes.indiatimes.com...er-by-july/articleshow/52719684.cms?prtpage=1
 
Reliance Communications, Aircel to merge wireless business

Reliance Communications (RCOM) and Maxis Communications Berhad (MCB), promoters of Aircel today announced that they have signing an agreement for the merger of their Indian wireless businesses, in a largest-ever consolidation in the Indian telecom sector.

“The RCOM-Aircel combination will create a strong operator clearly ranked amongst India’s top 4 telcos by customer base and revenues, also ranking amongst the top 3 operators by revenues in 12 important circles,” said the company.
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MergedCo will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033-35. It will be one of India’s largest private sector companies, with an asset base of over Rs. 65,000 crore (US$ 9.7 billion) and net worth of Rs. 35,000 crore (US$ 5.2 billion).

http://www.fonearena.com/blog/197288/reliance-communications-aircel-to-merge-wireless-business.html
 
Talking about the recent merger of mobile broadband business operations of RCom and Aircel, Anil Ambani said, “The merger with Aircel & SSTL made RCom the 3rd largest telecom player.

I believe that the merger with Aircel & SSTL will create huge shareholder wealth.” The combined entity (of RCom and Aircel) has an asset base of over Rs 65,000 crore ($9.7 billion) and net worth of Rs 35,000 crore ($5.2 billion).

The MergedCo will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands, and will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033-35.

“RCom will be a transformed player in the next one year. We do not want to spend huge funds in spectrum acquisition,” he said.
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“We will be among the top operators in 12 most important cities across India. We crossed the 1 million 4G paid customers using more than 1GB data mark. RCom has reached full 4G-LTE without any capex on balance sheet,” he added.
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http://www.financialexpress.com/ind...to-say-about-his-elder-brother-mukesh/393804/
 
swatkats said:
Reliance Communications-Aircel deal gets CCI nod

http://zeenews.india.com/companies/reliance-communications-aircel-deal-gets-cci-nod_1988253.html




More 5-6 months.Rcom will disappear and there'll be only Aircel.
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No word on this particular topic by RCom internal employees. They say that those employed with ADA group will remain ADAG group employees and because the Reliance brand is strong in some circles they might keep both brands active, or allow a smooth transition into Aircel. Everything is speculation for now and we will learn more in about 4 months from now.

It also appears to me that Maxis might exit the JV after a few years and that Tata may join in.
 
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