NEW DELHI: Reliance CommunicationsBSE -5.43 % (RCom) and the promoters of Aircel are set to ink a “binding definitive” pact in around two weeks to merge their wireless businesses, which would create a strong No. 4 telco through India’s first such pan-India deal.
“RCOM and Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited (Sindya), the shareholders of Aircel Limited (“Aircel”), expect to sign binding definitive documentation and announce the proposed transaction for the combination of the Indian wireless business of RCOM and Aircel very shortly,” the Anil Ambani-owned carrier said on Thursday.
Meanwhile, sources said RCom’s customers of its erstwhile CDMA services will be able to start using 4G services shortly, starting with users in Mumbai from July 1 under the company’s spectrum sharing agreement with Reliance Jio Infocomm. Customers in Delhi, Kolkata, Gujarat and Andhra Pradesh will gradually follow in the first phase.
RCom’s stock rose sharply on the merger news, ending the day 4.2 per cent higher at Rs 49.70 on the Bombay Stock Exchange, outpacing a 0.9 percent rise in the benchmark index.
“The CEO and the top management level will be decided in due course but it will be the best man for the job,” the first person said. Currently, Gurdeep Singh is the chief executive at RCom’s consumer business, which includes wireless, while Kaizad Heerjee is the CEO at Aircel.