Idea Cellular on Monday announced that its board has approved the merger of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services Limited with itself. The entire process of merger will be completed within 24 months, according to a press release by the company.
Vodafone will hold 45 percent in the combined entity and Idea promoters will hold a 26 percent in the new entity. AB Group will have the right to buy 9.5 percent stake in the entity at Rs 130 per share. Merged entity will be called as Vodafone Idea.
"Upon the amalgamation of becoming effective, the entire business of VIL and VMSL ( excluding VIL's investment in Indus Towers) will vest in the company," Idea Cellular said in a statement.
Vodafone India Net worth is Rs 128.55 billion and Vodafone Mobile Services Limited’s net worth fixed as Rs 37.37 billion. Idea Cellular Limited net worth is calculated as Rs 242.96 billion, according to the company press release.