Vodafone Completes Merger With Idea Cellular; Forms Vodafone Idea
Vodafone Group Plc (VOD.L,VOD) announced Friday the completion of the merger between Vodafone India Ltd and Idea Cellular Ltd. The combined entity will be renamed Vodafone Idea Ltd. shortly and will remain listed on the Indian stock exchanges.
The completion follows clearance of the transaction by the relevant competition and regulatory authorities.
Vodafone Idea is jointly controlled by Vodafone and the Aditya Birla Group. The Chairman of the Board of Vodafone Idea is Kumar Mangalam Birla and the Board has appointed former Vodafone India COO, Balesh Sharma, as the CEO.
The company said the merger creates India’s leading telecoms operator, with nearly 408 million customers. During the twelve months to 30 June 2018, Vodafone India and Idea generated revenue of 585 billion Indian Rupees or 7.1 billion euros and EBITDA of 107 billion rupees or 1.4 billion euros.
Vodafone Idea is expected to generate140 billion rupees or 1.7 billion euros run-rate cost and capex synergies, equivalent to a net present value of approximately 8.5 billion euros.\
Aditya Birla Group is separately completing the purchase of a 4.8% stake in Vodafone Idea from Vodafone Group for a total consideration of 26 billion rupees or 0.3 billion euros.
Following completion, Vodafone will own a 45.2% stake in Vodafone Idea and Aditya Birla Group will own a 26.0% stake, both on a fully diluted basis.
Vodafone will also separately hold a 29.4%8 stake in the combined entity resulting from the merger between Bharti Infratel and Indus Towers.
by RTTNews Staff Writer
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