In one of the biggest mergers in the telecom space, Vodafone India and Aditya Birla Group-promoted Idea Cellular on Monday announced their much-awaited amalgamation.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, will also be the Chairman of the merged entity.
Idea Cellular in a regulatory filing on Monday said its Board of Directors "has approved the scheme of amalgamation of Vodafone India Limited and its wholly owned subsidiary Vodafone Mobile Service Limited with the company (Idea)".
The merger will create an entity with over Rs 80,000 crore revenue. Vodafone will own 45.1 per cent of the combined company, said Idea in a statement.
"Vodafone will own 45.1 per cent of the combined company after transferring a stake of 4.9 per cent to the promoters of Idea and/or their affiliates for Rs 38.74 billion in cash concurrent with the completion of the amalgamation. The promoters of Idea will hold 26 per cent of the company and the balance will be held by the public," the statement said.
"The Aditya Birla Group will then own 26 per cent and has the right to acquire more shares from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time," it added. IANS