New Delhi: Idea Cellular on Friday said that National Company Law Tribunal (NCLT) has approved its merger deal with telecom major Vodafone.
In October, Idea shareholders voted in favour of the merger. In the next step, both the companies need a final approval from the Department of Telecom.
Last year, Vodafone India and Idea Cellular had agreed to merge their operations to create the country’s largest telecom operator worth of more than USD 23 billion with a 35 percent market share.
The combined entity of Vodafone India and Idea Cellular, which are currently India’s number 2 and 3, respectively, would dislodge Bharti Airtel to counter the fierce price war in the world’s second-largest telecom market.
The deal gives Vodafone India an implied enterprise value of Rs 82,800 crore and Idea Rs 72,200 crore.
Post the transaction, the British firm will own 45.1 per centstake in the merged entity, while the Aditya Birla group, Ideas parent, will have 26 percent after paying Rs 3,874 crore cash for a 4.9 per cent stake.
The remaining 28.9 percent will be held by other shareholders.