Vodafone Idea Merger: Ten Things To Know
In terms of one 'implementation agreement' dated March 20, 2017, it was proposed to change the name of the merged entity to include the names of Vodafone and Idea, the company informed in a stock market filing.
In view of the above, the board of directors of Idea has decided to change the name of the Company from "Idea Cellular Limited" to "Vodafone Idea Limited", the company further said.
The Registrar of Companies (RoC) has approved the availability of the desired name i.e. Vodafone Idea Limited vide its approval dated May 24, 2018. The provisions of the Companies Act, 2013 and rules made there under requires the Company to obtain approval of shareholders by a Special Resolution for effecting change in the Company name and consequential alteration in the Memorandum and the Articles of Association.
Along with the name change, the company also seeks the approval of members by way of special resolution, that would authorise the company's board to issue Non-Convertible Securities, including but not limited to NCDs (non-convertible debentures), up to an aggregate amount not exceeding Rs 15,000 crores on a private placement basis, at discount or at par or at premium.
For the merger, the companies first approached the approval of Competition Commission of India (CCI). On July 24, last year the CCI gave its approval to the merger of two telecom companies. In May 2017, markets regulator SEBI had sought clarification over the merger of two companies.
On October 13 last year, shareholders of Idea Cellular gave their approval to the scheme relating to the merger of its mobile business with Vodafone India. Over 99 per cent of Idea shareholders voted in favour of the merger at the shareholders' meeting on October 12, 2017, stock exchange filing by Kumar Mangalam Birla-led Idea Cellular stated.
Following the shareholders' approval, the companies sought approval from the National Companies Law Tribunal (NCLT). As the NCLT approved the proposed merger, the companies are now free to approach the department of telecom for the final approval.
On March 22, both the companies had announced Vodafone's chief operating officer Balesh Sharma will be appointed as the CEO of the merged entity.
Kumar Mangalam Birla will be the non-executive chairman of the merged company.
The joint enterprise of Vodafone and Idea Cellular, currently country's number two and number three telecom companies, respectively, would unseat Bharti Airtel to grab the top slot. Once the deal goes through, Vodafone will own 45.1 per cent stake in the merged entity, while Idea Cellular will have a 26 per cent stake