Adithya Vikram
Banned
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- 13 Sep 2013
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Reliance Communications announced on Wednesday that it had extended the exclusivity period with the shareholders of Aircel Limited by 60 days to May 22, 2016, to consider the potential combination of the Indian wireless business of Reliance Communication and Aircel.
The company also said that the decision to extend the exclusivity period was following the good progress made.
The decision to merge is part of the consolidation witnessed by the industry to derive benefits in opex and capex synergies and revenue enhancement.
Reliance Communications also stated that discussions were non-binding in nature and that the transaction would be subject to completion of due diligence, definitive documentation and regulatory, shareholders' and other third party approvals. Hence, there was no certainty that any transaction would result.
On December 23, 2015, Reliance Communications had announced that it had entered into a 90-day non-binding exclusivity period with Maxis Communications Berhad and Sindya Securities and Investments, shareholders of Aircel, to consider potential combination of their Indian wireless business. The announcement came a month after Reliance Communications' announcement of a similar deal with MTS, the Indian arm of Russia's Sistema Group, which signalled the beginning of consolidation in the telecom sector.
Reliance Communications could, after the two mergers, become the country's second-largest telecom company by subscribers after Sunil Mittal's Bharti Airtel. Reliance Communications is now the fourth-largest telecom company by subscribers trailing Vodafone and Idea Cellular. Aircel comes in at the fifth position.
Aircel offers 2G services in 19 circles, excluding Kolkata, Delhi, Mumbai and Chennai. It has 3G spectrum for 13 circles and 4G spectrum for eight and has over 84 million users.
Source:-
RCom extends merger talks with Aircel by 60 days | Business Standard News
RCom extends exclusivity period for merger talks with Aircel promoters | Business Line
http://telecom.economictimes.indiatimes.com/news/rcom-aircel-extend-merger-deal-talks-by-60-days/51528247
The company also said that the decision to extend the exclusivity period was following the good progress made.
The decision to merge is part of the consolidation witnessed by the industry to derive benefits in opex and capex synergies and revenue enhancement.
Reliance Communications also stated that discussions were non-binding in nature and that the transaction would be subject to completion of due diligence, definitive documentation and regulatory, shareholders' and other third party approvals. Hence, there was no certainty that any transaction would result.
On December 23, 2015, Reliance Communications had announced that it had entered into a 90-day non-binding exclusivity period with Maxis Communications Berhad and Sindya Securities and Investments, shareholders of Aircel, to consider potential combination of their Indian wireless business. The announcement came a month after Reliance Communications' announcement of a similar deal with MTS, the Indian arm of Russia's Sistema Group, which signalled the beginning of consolidation in the telecom sector.
Reliance Communications could, after the two mergers, become the country's second-largest telecom company by subscribers after Sunil Mittal's Bharti Airtel. Reliance Communications is now the fourth-largest telecom company by subscribers trailing Vodafone and Idea Cellular. Aircel comes in at the fifth position.
Aircel offers 2G services in 19 circles, excluding Kolkata, Delhi, Mumbai and Chennai. It has 3G spectrum for 13 circles and 4G spectrum for eight and has over 84 million users.
Source:-
RCom extends merger talks with Aircel by 60 days | Business Standard News
RCom extends exclusivity period for merger talks with Aircel promoters | Business Line
http://telecom.economictimes.indiatimes.com/news/rcom-aircel-extend-merger-deal-talks-by-60-days/51528247
