Idea Cellular surges 15%
Vodafone India's business barring its investments in Indus Towers will vest in the new entity, which will be renamed at a later stage, said a company statement.
By Rajesh Mascarenhas, ET Bureau | Updated:
MUMBAI: Shares of Idea Cellular surge as much as 15% after Idea board approves merger with Vodafone. According to an exchange filing, Idea Cellular said that board has approved the scheme of amalgamation with Vodafone India subject to receipt of necessary approvals.
Vodafone India's business barring its investments in Indus Towers will vest in the new entity, which will be renamed at a later stage, said a statement by the company on BSE.
As per the scheme of amalgamation, Vodafone will own 45.1% in the combined entity after transferring 4.9% to the promoters of Idea Cellular for Rs 3874, crore in cash post the merger. Kumar Mangalam Birla and other promoters of Idea Group will hold 26% and the rest will be owned by the public, said the statement.
The merger should be completed in 2018. Promoters of Idea and Vodafone will have the right to nominate three directors each. Idea will have its nominee as chairman while CFO will be put forth from Vodafone's side. Both CEO and COO will be a joint decision taken by both parties, said the statement.
Shares of Idea Cellular has risen 40% since January 27 through Friday, the day Vodafone confirmed that they are negotiating with Idea Cellular for a merger of its Indian business.
At 9.30 am, the stock was trading at Rs 118, up 9.3%.
Vodafone India's business barring its investments in Indus Towers will vest in the new entity, which will be renamed at a later stage, said a statement by the company on BSE.
As per the scheme of amalgamation, Vodafone will own 45.1% in the combined entity after transferring 4.9% to the promoters of Idea Cellular for Rs 3874, crore in cash post the merger. Kumar Mangalam Birla and other promoters of Idea Group will hold 26% and the rest will be owned by the public, said the statement.
The merger should be completed in 2018. Promoters of Idea and Vodafone will have the right to nominate three directors each. Idea will have its nominee as chairman while CFO will be put forth from Vodafone's side. Both CEO and COO will be a joint decision taken by both parties, said the statement.
Shares of Idea Cellular has risen 40% since January 27 through Friday, the day Vodafone confirmed that they are negotiating with Idea Cellular for a merger of its Indian business.
At 9.30 am, the stock was trading at Rs 118, up 9.3%.
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