Published on: 29th Feb 2016
Plans for a merger between two of India’s larger mobile networks have been revamped, according to local reports.
Reliance Communications and Aircel entered into 90-days of exclusive talks last December, and had been expected to form a new company which would then be listed on the stock market.
Citing people involved in the transaction, the Economic Times reports that the deal has been significantly altered.
Under the new plans, the two companies will each own 50% of the merged mobile network, and will be increasing the amount of debt they pile into the company.
The deal is expected to be completed by this September.
A listing on the local stock exchange is still a possibility, although not until next year, by which time cost-cutting should be more apparent from the elimination of overlapping back-office functions.
If the merger takes place, the new company will be the third largest in the country by subscriber numbers, with around 200 million customers.