India: RCom to close $6 bn Aircel merger soon

Reliance Communications is likely to sign a binding pact soon with Aircel for a $6 billion merger, with the combined entity likely to displace Idea Cellular from the third position.

Reliance currently holds the fourth position in the pecking order led by Airtel and followed by Vodafone. Confirming the development, a senior official of the Reliance Group told The Hindu, “Closing such high-value deals in India takes time. We are on target and the deal will be closed early next month.”

“Reliance Communications and Maxis Communications and Sindya Securities and Investments, the shareholders of Aircel, expect to sign binding definitive documentation and announce the proposed transaction for the combination of the Indian wireless business of R-Com and Aircel very shortly,” according to a company statement.

“The combined entity will potentially be India’s third largest telecom firm by subscribers and is expected to have EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs.5,000-Rs.6,000 crore in the next financial year with revenue of Rs. 25,000 crore,” said a source directly involved in closing the deal.

Full Content: The Hindu

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