Idea Cellular and Vodafone merger is announced by board.
Merger will make it India’s largest telecom company. The merger should be completed within next 2 years.
The combined company will have 400 million customer base in India.
Vodafone will be having 45.1 percent of the combined entity after transferring 4.9 percent to promoters of idea for Rs.3874 crores in cash post-merger.
Idea will have the complete right to appoint the chairman and CFO will be deciding by the Vodafone’s side.
A joint decision will be taken by both idea and Vodafone for appointing CEO and COO.
Promoters of Vodafone and Idea will have the right to nominate three directors each.
The merger will result in a largest telecom giant in the country with 3G and 4G footprint, pushing Bharti Airtel to the second place.
The merged company will be having good spectrum to complete with other major telecom operators.
The merged company can offer attractive prices for its mobile services to consumers, especially with a competition from Reliance JIO.
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