Idea Cellular has finally given Vodafone India the nod. Yes, sources have reported that Idea Cellular’s board has approved of the Vodafone merger. From what has been reported so far, Vodafone India has insisted on retaining the CEO and CFO positions while Idea Cellular’s Kumar Mangalam Birla will be the chairman.
Report of the same come from MoneyControl confirming that the deal has been approved by Idea Cellular.
As reported earlier by the Economic Times, Vodafone CEO Vittoria Colao had arrived in Mumbai this weekend to sort out issues related to the deal between the world’s largest telecom service operator and India’s Idea Cellular.
Vodafone seemed pretty confident back then as well and so the approval has now followed. The telecom giant stuck to its demand to retain CEO and CFO positions in the merger entity and the from what we have learnt so far, a deal has been struck with Kumar Mangalam Birla being named as the chairman.
As per the deal Vodafone will hold 45 percent in the combined entity while Idea promoters will hold a 26 percent stake. AB Group will have the right to buy 9.5 percent stake in the entity at Rs 130 per share reports MoneyControl.
The same is expected to intensify the competition between operators in the country.
Both telecom companies have yet to make a formal announcement about the merger, which is where the details of the same will become official.