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India: RCom, Aircel seal India’s largest telecom deal

By  |  September 14, 2016

Reliance Communications has finally sealed the deal to merge its wireless business with Aircel to create a Rs. 28,000 crore venture with 180 million subscribers. RCom has already merged with Russian operator Sistema which will hold 10 per cent stake in the holding company.

Borad contours of the deal are as follows – the merged entity will be rebranded and both RCom and Aircel will own 50 per cent stake each. Board to have equal representation.

After hiving off the wireless business into the new merged entity, RCom will be left with the tower business and the enterprise business. Tower and fiber assets monetization plans underway and set to be announced soon. Talks are on with with Brookfield Asset Management for the sale of the tower unit. Post this sale, RCom standalone post-merger to continue as pure enterprise, data centre and cloud service provider.

The merger of the wireless businesses will take around 6 months. No decision has been taken in terms of who will be the CEO of the merged entity.

Full Content: The Hindu

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