RCom-Aircel merged wireless company to be called Aircom
R-Com will demerge its wireless business and transfer it to the new entity Aircom.
Reliance Communications (RCom) Chairman Anil Ambani on 2 June 2017 announced that the merged entities of RCom and Aircel will be called Aircom.
These merged entities are Reliance Communications and Maxis Communications Berhad (MCB). Both the companies announced their merger plans in September 2016.
Key highlights of the merger
• R-Com will demerge its wireless business and transfer it to the new entity Aircom.
• Both R-Com and Maxis will hold 50 per cent each in the new entity Aircom.
• The merged company will be one of India’s largest private sector companies. It will have an asset base of over 65000 crore rupees and net worth of 35000 crore rupees.
• The company will be managed by an independent professional team under the supervision of the board.
• Once the merger is completed, RCom’s overall debt will be reduced by 25000 crore rupees or over 40 per cent of its debt, while Aircel’s debt will reduce by 4000 crore rupees.
• The entity will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands.
• It will enjoy enhanced business continuity through extended validity of spectrum holdings till 2033-35.