Reliance Communications Ltd. has received approval from the Securities and Exchange Board of India (SEBI), BSE Ltd (BSE) and National Stock Exchange of India Ltd (NSE) for the proposed Scheme of Arrangement for demerger of the wireless division of the company into Aircel Ltd and Dishnet Wireless Ltd.
Reliance Communications has filed an application with the National Company Law Tribunal (NCLT), Mumbai Bench. Post closing of the deal, RCom and the present shareholders of Aircel Ltd will hold 50 per cent each in Aircel Ltd.
The merger will create the country’s third-largest mobile operator by subscriber base.
Creation of the new entity will first involve RCom demerging its existing cellular business, which has around 100 million subscribers. Other businesses, including tower assets and fixed-line enterprise units, will continue to remain with RCom. The wireless unit will then be merged with Aircel.
RCom and Aircel’s Malaysia-based promoter Maxis Communications Berhad will hold 50 per cent each in the venture, with equal representation on the board. RCom had earlier merged with Sistema JSFC’s Indian operations — MTS — under which the Russian company holds a 10 per cent stake in RCom.
The merged entity will, however, carry a debt of nearly ₹28,000 crore — RCom and Aircel will each contribute half that amount into the debt pool.