RCom tumbles 8% as NCLT looks into merger proposal with Aircel

NEW DELHI: Shares of Reliance Communications (RCom) tumbled over 7 per cent on Thursday amid reports that the National Company Law Tribunal ( NCLT) will take a call on whether to admit the company’s merger proposal with Aircel, even as the telecom department suggested that the proposed partners should first get clearance from the Supreme Court.

Following the reports, the stock fell 8.58 to hit a low of Rs 22.90 on BSE. It eventually closed the day at Rs 23.10, down 7.78 per cent.

Reliance Communications’ lenders China Development Bank, Standard Chartered Bank and HSBC have given their consent before NCLT for the merger proposal to be admitted by the tribunal for a final hearing, ET reported.

However, equipment supplier Ericsson, which have outstanding dues to recover from RCom, and GTL Infrastructure’s Chennai Network Infrastructure, which had bought 17,500 mobile towers from Aircel, have objected to the merger proposal being heard by the tribunal, the report noted.

The telecom department (DoT), represented by senior council Beni Chatterji, told the tribunal that it would be appropriate for Aircel and RCom to take permission from Supreme Court since the issue with regard to 2 G spectrum of Aircel is pending there.