Reliance Communications spurts 16% as NCLT admits merger petition

NEW DELHI: Shares of Reliance Communications shot up over 16 per cent on Monday after National Company Law Tribunal (NCLT) admitted petition for the company’s wireless wing merger with Aircel, sources told ET Now. The NCLT also has admitted petition for 51 per cent stake sale in the company’s tower arm’s to Brookfield, sources said.

Following the announcement, the stock surged 16.14 per cent to end the session at Rs 24.10 on BSE.

RCom’s merger proposal with Aircel has already received approvals from Sebi, CCI, BSE and NSE.

The merger, if it happens, will set the ball rolling for a sale of RCom’s stake in its tower unit to Canada’s Brookfield. Together, the deals could reduce the telecom firm’s debt of nearly Rs 45,000 crore by as much as 60 per cent, ET reported last week.

The Anil Ambani-owned telco’s counsel had earlier said it's running against time to complete the merger with Aircel and stake sale in its tower business. The beleaguered telecom company, which has defaulted on some repayment obligations, needs to complete the merger as well as the tower sale within the seven-month breather it has from lenders, which expires in December, ET reported.