Reliance Communications on Monday said it has received approval of the Competition Commission of India (CCI) for the demerger of its wireless division into Aircel Ltd and Dishnet Wireless Ltd. "Reliance Communications Ltd has received an approval of the Competition Commission of India (CCI) for the proposed Scheme of Arrangement for demerger of the Wireless division of the company into Aircel Ltd and Dishnet Wireless Ltd," the company said in a regulatory filing.
Reliance Communications and Aircel in September last year announced the merger of their wireless operations to create a combined entity with assets worth Rs. 65,000 crores. "Post closing, the company and the present shareholders of Aircel Ltd will hold 50 percent each in Aircel Ltd," Reliance Communication said.
The company has already received approval from the Securities and Exchange Board of India (SEBI), stock exchanges BSE and NSE for the deal and has filed an application with the National Company Law Tribunal (NCLT) for the same.
The transaction will reduce RCom's debt by Rs. 20,000 crores ($3 billion), while Aircel's debt would go down by Rs. 4,000 crores ($600 million) on closing in 2017, the two companies had said last year. Shares of Reliance Communications were trading 0.78 down at Rs. 37.95 on BSE.
Published Date: Mar 20, 2017 04:04 pm | Updated Date: Mar 20, 2017 04:04 pm