RCom to transfer its wireless business Reliance Telecom to Aircel
After announcing it's clear interest in merging with Maxis' Aircel, now the Anil Ambani-backed Reliance Communication has announced to transfer its wireless telecom business Reliance Telecom to Aircel and its subsidiaries.
It said in a statement,”The demerger and vesting of the wireless business undertaking of Rcom and RTL to Aircel and (Dishnet Wireless-Aircel) DWL will provide in opportunity to strenghten their telecom folder in terms of shareholder, equity and customer base.”
Turnover of the wireless business undertaking of RTL as on March 2016, stood around Rs 10,605 crore, which is around 48% of the total turnover of Rcom.
Consolidation of the wireless business undertakings, will provide an opportunity to Rcom in acquiring equity interest in Aircel.
Further, it will also help in expanding the business of Aircel and DWL in growing markets, thereby creating greater value for the shareholders.
It stated that the combination of Rcom and RTL along with AL and DWL, is a strategic fit for serving existing market and for catering to additional volume linked to new consumers.
There will be no change in the shareholding pattern of the Company, RTL and DWL pursuant to the Scheme.
Towards consideration of the transfer and vesting of the Wireless Business Undertaking of Rcom and RTL, including agreed capex as currently proposed, AL will issue and allot to the Company, 15,950,000,000 fully paid up equity shares of AL aggregating to 50% of the fully paid up equity share capital of AL on fully diluted basis.
After completion of the Scheme, AL and DWL will be operated and managed jointly by Rcom and the existing shareholders of AL as a joint venture company.