The telecommunications business with its smaller rival Aircel will create the country's fourth largest mobile phone operator with an asset base of more than Rs 65 billion.
In the country's largest telecoms sector consolidation, RCom and Aircel's majority owner Maxis Communications Berhad (MCB) of Malaysia announced the signing of final documents for the merger of their Indian wireless businesses.
Aircel will have 50 percent each in the new company. The board of the new company will have the same representation from both sides.
"The RCom-Aircel combination will create a strong operator clearly ranked among the top 4 telecommunications companies in India by customer base and revenue, and also among the top three carriers by revenue in 12 major circles," both companies said in a statement. set.
RCom is the fourth largest telecommunications operator in India with almost 110 million customers, while Aircel is fifth with 84 million subscribers.
RCom had a 9.8 percent market share, while Aircel had an 8.5% share. Sistema, with which RCom previously merged, had a 0.7% interest.
Both of them
the companies will transfer Rs 14 billion rupees of debt each to the joint venture, bringing the total debt of the new company to Rs 28 billion rupees, excluding Rs 6 billion rupees of spectrum payment liability.
The deal will help RCom reduce its debt by Rs 20,000 crore (or 40 percent of the total debt on its books).
"RCom will continue to be the owner and operator of its high growth businesses in the national and global market
business space, data centers, fiber optics and related telecommunications infrastructure, in addition to owning valuable real estate, "the statement said.
MTS (Sistema) will continue to have a 10 percent interest in RCom, with no presence on the board.