DoT nod to Vodafone, Idea merger likely today

Post merger, Vodafone will own 45.1 per cent stake in the merged entity, while Idea Cellular will have a 26 per cent stake.

The Department of Telecommunications (DoT) might give conditional go-ahead to the merger of Vodafone India and Idea Cellular today, say media reports.
 
The deal between the country's second and third largest service provider will raise them to the status of the largest carrier.
 
Telecom minister Manoj Sinha is believed to have signed off on the merger and a final letter is likely to be issued on Monday, people in the know told ET.
 
The merger between these two service providers has already been given the green signal by Competition Commission of India (CCI), markets regulator Securities Exchange Board of India (SEBI), and also by the National Companies Law Tribunal (NCLT).
 
As per ET report, the telecom department may ask Idea Cellular to submit a bank guarantee of Rs 2,100 crore as one-time spectrum charge (OTSC) — the market fee for administrative spectrum it holds.
 
Besides, the merged entity will be known as Vodafone Idea Ltd, as was announced on June 2 by Idea Cellular in a stock market filing, however, the proposal has yet to be approved in an extraordinary general meeting that will be held on June 26.
 
“The department is likely to issue the letter giving conditional approval by Monday, which will seek the one-time spectrum charge to be paid immediately by Idea, and undertakings to pay dues to be paid in the future, including deferred payments," a person aware of the process told ET. 
 
Post merger, Vodafone will own 45.1 per cent stake in the merged entity, while Idea Cellular will have a 26 per cent stake.
 
Vodafone's chief operating officer (COO) Balesh Sharma will be the CEO of the merged entity, as announced by both companies three months ago.
 
Source: ET, Media reports

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