The Competition Commission of India (CCI) has approved the proposed merger of Vodafone India with Aditya Birla owned Idea Cellular, according to the latter’s filings with the stock exchanges. Both companies had signed a definitive deal in March this year. Both Vodafone and Idea will have equal control over the merger entity. However, Vodafone will remain as the largest shareholder in the combined entity. Idea Cellular will additionally sell a 9.5% stake to Aditya Birla. The transaction is subject to regulatory approvals and is expected to close during 2018, Vodafone said during its recent financial results. The deal was signed after Reliance Jio’s launch in September last year. Jio’s freebies have hurt telco’s earnings, forcing smaller telcos to look for an exit. Other telcos are also consolidating to take on Jio: Telenor is now merging with Airtel while Videocon has decided to partially exit the telecom industry and re-launch via an MVNO license. Currently, promoters own 42.39% in Idea Cellular, according to BSE filings. The rest 57.61% stake in held by public shareholders. Aditya Birla Group currently owns 31% (majority stake) of Idea Cellular, while the rest of the promoters including Pilani Investments, Hindalco Industries, and Grasim Industries own rest of the minority stake in Idea Cellular. Below is the proposed merger scheme between both companies: Vodafone will own a 50% controlling stake in the combined entity, while Aditya Birla will own a 21% stake in the combined entity. Post completion of the merger, Vodafone will transfer 4.9% stake in the merged entity to Aditya Birla for Rs 3,874 crore.…
- How state family database projects pose dangers of in-depth citizen profiling and exclusion? January 26, 2023
- MediaNama Daily: This Republic Day, let’s remember our rights January 26, 2023
- What Google is (and isn’t) changing in Android and Play Store to comply with India’s antitrust orders January 25, 2023
- One-size-fits-all rules won’t work for social media companies: SFLC’s Mishi Choudhary on IT Rules January 25, 2023
- Rajeev Chandrasekhar’s Plans For India Stack: 3 Key Points From His Speech January 25, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.
The provisions around grievance redressal in the Data Protection Bill "stands to be dangerously sparse and nugatory on various counts."
By Soujanya Sridharan and Dr. Sarayu Natarajan Platform work and data: the intersection Every time you use a ride-hailing app, the matching algorithm processes...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...