Reliance Communications signed a deal with Aircel for merging their wireless businesses. Rcomm-Aircel merger will make them India’s third largest mobile company by subscribers along with spectrum holding.
Currently, RComm is the 4th largest firm in terms of subscriber base but with Aircel merging, it will overtake Idea cellular for 3rd rank. However, on the base of revenue, Rcomm-Aircel merger will be on rank 4 at around revenue of Rs 25000 Crore.
While Revenue for Idea Cellular is Rs 35980 Crore in FY16. None of the Company has disclosed the structuring after merging. The debt of new merged film will be at Rs 28000 Crore – 14000 Crore from each of the partners.
RComm Chairman Anil Ambani said, “Together with our partners, MCB (Maxis Communications Berhad), we are delighted to have taken the lead in consolidation of the Indian telecom sector, first, with RComm’s acquisition of the wireless business of SSTL (Sistema /MTS), and now, with the combination of our business with Aircel in a 50:50 joint venture with MCB.”
In December 2015, RComm had signed a non-binding deal with Aircel which is now extended.
In the first full year of operations, or FY18, the combined Ebitda (earnings before interest, tax, depreciation and amortization) of the JV is estimated at Rs 6,000 crores.
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