Merger with Idea on track for completion in 2018: Vodafone CEO

Vodafone India MD and CEO Sunil Sood said that process of merger with Idea Cellular is "going ahead of schedule".

"There are three stages, first is CCI, second is Sebi, and third is NCLT and DoT, we're on track for all three. By the end of 2018 merger is expected to complete," added the MD.

The $23 billion merger — announced on March 20 — if completed will create India’s largest telecom firm, which will be better placed to take on the threat posed by Reliance Jio Infocomm.

Under the agreement, Vodafone will own 45.1% of the combined company after transferring a 4.9% stake to the Aditya Birla Group for Rs 3,900 crore in cash, concurrent with completion of the merger. The Aditya Birla Group will then own 26% of the combined company and Idea's other shareholders will own the remaining 28.9% stake. Beyond this, it can pick up another 9.5% stake from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time.

Idea Cellular had on the bourses earlier stated that it has received conditional approval from SEBI, unconditional nod of Competition Commission of India (CCI), has filed an application for the same in National Company Law Tribunal (NCLT) and will conduct a shareholders and creditors meet on October 11th for the merger process.