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Vodafone, Idea Discuss Possible Merger To Create India’s Largest Telco
Swarajya Staff
Jan 30, 2017, 05:03 PM | Updated 05:03 PM IST
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After months of speculation, Vodafone today (30 January) confirmed that that it has been in talks with the Aditya Birla Group for a merger between Vodafone India and Idea Cellular, the largest such deal in Indian telecom history. The merger will result in a new entity with a subscriber base of more than 400 million, which will displace Bharti Airtel’s 260 million strong network as the largest in India.
Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India -- excluding Vodafone’s 42 per cent stake in Indus Towers -- and Idea. Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India .Vodafone India’s parent company Vodafone Group in a statement
Vodafone has over 200 million subscribers across the 22 telecom circles in India. It plans to roll out 4G services in 17 circles, covering 2,400 towns, by the end of this fiscal. Idea, meanwhile has a similar subscriber base, with a presence in all the 22 circles. It plans to have 4G services across 20 circles by March 2017.
Speculation on the merger had been rife for a year that became more prominent after the entry of Reliance Industries-owned Jio in September 2016.
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