“Reliance Communications has received approval of the Securities and Exchange Board of India (SEBI), BSE Ltd and National Stock Exchange of India Ltd (NSE) for the proposed Scheme of Arrangement for de-merger of the wireless division of the company into Aircel and Dishnet Wireless Ltd,” a company statement said.
“Pursuant to the same, Reliance Communications Ltd has filed an application with the National Company Law Tribunal (NCLT), Mumbai Bench, for approval of the said Scheme. The proposed transaction is subject to other necessary approvals,” it added.
Post closing, RCOM and the present shareholders of Aircel will hold 50 per cent each in Aircel.
Industrialist Anil Ambani-led RCOM and Aircel announced plans to merge their wireless operations on September 14, 2016 to give birth to an entity with assets worth Rs 65,000 crore.
RCOM and Maxis Communications Berhad (MCB) will hold 50 per cent each in the merged entity with equal representation on the board and committees.
The merged entity will have the second-largest spectrum holding among all operators, aggregating 448 MHz across the 850, 900, 1,800 and 2,100 MHz bands.
The transaction will reduce RCOM’s debt by Rs 20,000 crore, while Aircel’s debt would go down by Rs 4,000 crore on closing in 2017.
RCOM’s shares were trading at Rs 37.10 per share, up 2.34 per cent in the BSE at 12.05 p.m.