Vodafone, Idea announce merger: Key points you need to know
Vodafone and Aditya Birla group-run Idea Cellular announced the merger of their operations, creating the largest mobile operator by customer and revenue market share.
Mumbai: British telecom major Vodafone and Aditya Birla group-run Idea Cellular on Monday announced the merger of their operations, creating the largest mobile operator by customer and revenue market share.
Here are the key points you need to know about the Vodafone-Idea merger
- The merged entity, which will come into force over the next two years.
- It will be headed by Kumar Mangalam Birla as Chairman.
- Vodafone will have its nominee as the chief financial officer.
- The all-share merger for both partners excludes Vodafone's 42 percent stake in Indus Towers and will be effected through issuing new shares in Idea to Vodafone.
- It will result in Vodafone deconsolidating Vodafone India.
- Vodafone will own 45.1 percent in the new company after transferring 4.9 percent to the Aditya Birla group for Rs 3,874 crore in cash concurrent with completion of the merger.
- Idea will hold 26 percent of the combined entity while the rest will be owned by public shareholders.
- The merged entity will be jointly controlled by Vodafone and the Aditya Birla group as per shareholders' agreement.
- The combined venture will account for over 25 percent of the allocated spectrum and will have to sell about 1 percent (worth Rs 5,400 crore) to comply with spectrum cap norms.