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RCom-Aircel Merger Marks The Biggest Deal With Rs 65,000 Crore On The Line

Reliance Communications (RCOM) & Maxis Communications Berhad who promotes the Aircel just signed definitive documents for merging their businesses. This deal was in the pipeline for many months now, but it is finally official.

"On consummation of the merger, RCom and Maxis Communications are committed to additional equity infusion into the merged company to further strengthen the balance sheet, fund future growth plans, and enhance financial flexibility. Both parties are already in talks with leading international investors in this regard," RCom said in a statement.

Let us know more about it. 

RCom-Aircel Merger Marks The Biggest Deal With Rs 65,000 Crore On The Line

RCom-Aircel Merger Marks The Biggest Deal With Rs 65,000 Crore On The Line

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  in Technology

Anil Ambani at an event sharing his future plans.

Anil Ambani at an event sharing his future plans.

"We expect this combination to create substantial long-term value for shareholders of both ... given the benefits of the wide-ranging spectrum portfolio and significant revenue and cost synergies," Reliance Communications Chairman, Anil Ambani said.

What is the future with RCom and Aircel?

What is the future with RCom and Aircel?

The 'RCOM-Aircel' combination will create a high operator apparently ranked amongst India's top 4 telecoms by customer base and revenues. According to a company statement, the merged company will have the second-largest spectrum against others with '448 MHz across the 850, 900, 1800 and 2100 MHz bands.'

Statistics before this deal.

Statistics before this deal.

According to Maxis Communications Berhad, this deal further reinforces MCB's commitment to India. MCB has invested more than Rs 35,000 crore ($ 5.2 billion) into Aircel, making this one of the highest foreign investments in the Indian telecom sector.

What the owner of Aircel has to say?

What the owner of Aircel has to say?

"This since acquiring Aircel in 2006, the magnitude of this investment, and the further equity commitment in support of this deal, are underpinned by MCB's belief in the long-term growth potential of both India and the Indian telecom sector," via an MCB statement.

So, here is the final deal between both the companies.

So, here is the final deal between both the companies.

This merged entity will be one of the India's largest private sector companies, with an asset base of over Rs. 65,000 crores (Approx $9.7 billion) and net worth of Rs. 35,000 crore (approx $5.2 billion).

What analysts are saying?

What analysts are saying?

"The merged entity leader in 12 cycles will be a strong challenger to Kumar Mangalam Birla-led Idea Cellular, which is getting squeezed from both ends. With the launch of Reliance Jio and this merger," said a leading telecom analyst.


What are the plans of Reliance?

What are the plans of Reliance?

Reliance Communication will continue to own and operate its high growth businesses in domestic as well as global enterprise space, data centers, optic fibre or related to telecom infrastructure, besides owning this valuable real estate, they added.

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