RCom gets SEBI approval for Aircel deal
Reliance Communications has been given the thumbs up by markets regulator SEBI to demerge its mobile division ahead of a JV with Aircel
The Securities and Exchange Board of India (SEBI) has given the greenlight for Reliance Communications (RCom) to demerge its wireless operations into Aircel.
The markets regulator, along with the BSE and NSE stock exchanges, approved the deal, which will see the creation of a 50:50 JV between RCom and Aircel-parent Maxis Communications.
The deal still needs further approval, but RCom has reportedly filed an application with the National Company Law Tribunal’s Mumbai Bench, according to the Economic Times.
“The company has received approval of "the Securities and Exchange Board of India (Sebi), BSE Ltd (BSE) and National Stock Exchange of India Ltd (NSE) for the proposed Scheme of Arrangement for demerger of the wireless division of the company into Aircel Ltd and Dishnet Wireless Ltd", RCom said.
The combined unit will become the fourth biggest mobile operator in India, in one of a number of recent examples of M&As in the country.
India’s leading mobile provider, Bharti Airtel, announced plans to acquire Telenor’s Indian unit, while second place Vodafone India is also in talks third placed provider Idea Cellular about a possible deal.
The market has been disrupted by the launch of Reliance Jio last year. Jio is offering some mobile services for free and has signed up more than 72.4 million subscribers in just four months.