Reliance Communications-Aircel Deal Gets Competition Regulator’s Nod
Reliance Communications Ltd. received approval of the Competition Commission of India (CCI) for the demerger of its wireless division into Aircel Ltd. and Dishnet Wireless Ltd.
"Reliance Communications has received an approval of the Competition Commission of India for the proposed Scheme of Arrangement for demerger of the Wireless division of the company into Aircel and Dishnet Wireless," the company said in a regulatory filing.
Reliance Communications and Aircel in September last year announced the merger of their wireless operations to create a combined entity with assets worth Rs 65,000 crore.
"Post closing, the company and the present shareholders of Aircel will hold 50 percent each in Aircel," Reliance Communication said.
The company has already received approval from the Securities and Exchange Board of India, stock exchanges BSE and NSE for the deal and has filed an application with the National Company Law Tribunal for the same.
The transaction will reduce Reliance Communications’ debt by Rs 20,000 crore ($3 billion), while Aircel's debt would go down by Rs 4,000 crore ($600 million) on closing in 2017, the two companies had said last year.