Idea, Vodafone set to operate as a single entity from April

THE IDEAVODAFONE COMBINE WILL HAVE 400 MN USERS WITH 35% CUSTOMER SHARE AND 41% REVENUE MARKET SHARE

MUMBAI: Aditya Birla Group-controlled Idea Cellular Ltd and British firm Vodafone Plc’s Indian unit are likely to start functioning as one unit from April, two people aware of the matter said.

The two companies, which are currently negotiating one of the most complex mergers in India, will create the world’s second largest and India’s largest telco, overtaking Bharti Airtel Ltd, post completion of the merger process. It will have almost 400 million customers with 35% customer share and 41% revenue market share. It will have revenue of ₹81,600 crore and an operating profit of ₹24,400 crore.

“If things go as per plan, we are looking at the first week of April to start operations as one entity,” said one of the two people quoted above on condition of anonymity.

This would also mean that the merger will complete at least three months before the earlier deadline of first half of 2018.

On Friday, the National Company Law Tribunal approved the proposed merger between Vodafone India Ltd and Idea Cellular Ltd. The two companies now require only the Department of Telecommunications’ (DOT) approval to proceed with the merger, having already received clearance from both the Competition Commission of India (CCI) and the Securities and Exchange Board of India (Sebi), in July. “We expect DOT approval to come in the next 45-60 days,” said the second person aware of the matter.

Once these companies get DOT nod, they will have to get the new entity registered with the Registrar of Companies, he added.

“Following which, there would be a board meeting that will announce the names of board members,” this person said. Announcement related to the executive management team will also be made in the meantime.

An Idea spokesperson did not respond to an email questionnaire sent on Wednesday.

A Vodafone India spokesperson said that his company has nothing more to add than what it said in November where in the company stated it expects to complete the merger in the first half of calendar year 2018.