Jan 31, 2017
97 Views
0 0

Telenor in talks with Aircel and RCom over Indian merger

Written by

Telenor Group has contacted Aircel and Reliance
Communications over a possible tie-up in India, as rumours of
consolidation in the market continues to grow.

The Economic Times claims Telenor is looking to enter a
share swap agreement to combine its Indian business and
spectrum with Aircel and RCom, whore are set to merge later
this year to become the third biggest mobile provider in the
country.

The ET cites executives aware of the matter, who said
Norwegian operator Telenor would take a 10% stake in the
combined entity, with RCom and Maxis Communications, which
owns Aircel, each taking a 45% stake.

Discussions reportedly began before Christmas, but doubts
have already been cast over the RCom/Aircel merger due to legal
issues which the latter is facing in India’s
Supreme Court.

The Court has threatened to revoke Aircel’s
license should Malaysian billionaire Anada Krishnan, who
controls Maxis, fail to appear in a corruption case currently
underway in a lower court.

Telenor has also held talks with Bharti Airtel, according to
the reports, with the latter looking to acquire
Telenor’s Indian business.

The reports come as Vodafone confirmed it is locked in talks
with Idea Cellular about a potential merger of their Indian
assets.

Read on: GlobalTelecomsBusiness

Article Categories:
TMT Industry

Leave a Comment