Idea Seeks NCLT Ap­proval for its Merger with Voda

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mum­bai: Idea Cel­lu­lar has ap­proached the Na­tional Com­pany Law Tri­bunal (NCLT) in Ahmed­abad, seek­ing its ap­proval for the mo­bile com­pany’s merger with Voda­fone In­dia and Voda­fone Mo­bile Ser­vices.

Idea filed the ap­pli­ca­tion on Mon­day af­ter the merger pro­posal re­ceived clear­ances from the Com­pe­ti­tion Com­mis­sion of In­dia and the Se­cu­ri­ties and Ex­change Board of In­dia, the com­pany said in a no­tice to stock ex­changes.

Shares of Idea Cel­lu­lar rose to an in­tra­day high of .₹ 95.45 on the BSE on Tues­day, be­fore clos­ing 1.3% down at .₹ 91.85.

The $23 bil­lion merger, if com­pleted, would cre­ate In­dia’s largest telecom firm that would be bet­ter placed to take on the threat posed by Re­liance Jio In­fo­comm. Be­sides NCLT, the com­pa­nies will have to get clear­ances from share­hold­ers and the depart­ment of telecom­mu­ni­ca­tions.

Sebi gave its con­di­tional ap­proval to the merger on Fri­day and said it would be sub­ject to the out­come of the reg­u­la­tor’s on­go­ing probe and ap­provals from share­hold­ers and NCLT.

In their no-ob­jec­tion let­ter on the scheme of ar­range­ment among Voda­fone Mo­bile Ser­vices, Voda­fone In­dia and Idea Cel­lu­lar and their re­spec­tive share­hol-


ders and cred­i­tors, the stock ex­changes said all the con­di­tions put forth by the reg­u­la­tor need to be placed be­fore the NCLT, while seek­ing its clear­ance.

Sebi said Idea has given an un­der­tak­ing that un­til it gets fur­ther di­rec­tions from the reg­u­la­tor, pro­moter Pi­lani In­vest­ment would not dis­pose of the shares it pur­chased be­fore the merger an­nounce­ment.

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