At a time when Mukesh Ambani’s Reliance Jio has made an aggressive entry into the telecom industry, The Reliance Communications on Wednesday announced its merger with Aircel.
As per reports, RCom and Maxis Communication Behard will each hold a 50 percent stake in the merged entity and will hold equal representation on the board of directors and all committees. Notably the company will be managed by an independent professional team under the supervision of Board.
Here are few things you should know about it:
- With this RCom’s overall debt will be reduced by Rs.20,000 crore and Aircel’s debt will reduce by 4,000 crore , upon completion of transaction year 2017
- It will be one of the largest private sector company of India with an asset base over Rs.65,000 crore
- The company will also have the second-largest spectrum holding amongst all operators and will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033- 35.
- Experts have given thumbs up to the merger as they believe that it will boost the subscriber base of Reliance Communications