New Delhi: The merger of Anil Ambani-owned telecom major Reliance Communications (RCom) with its peer Aircel has been called off and the former will hive off an alternate plan including monetising its spectrum bands and real estate assets.
In a meeting with Board of Directors, RCom reviewed the ongoing strategic transformation programme, and considered alternate plans for debt reduction.
The merger of mobile business of RCom and Aircel lapses with mutual consent Rcom and Aircel Limited (Aircel) had signed binding agreements in September 2016 for the merger of Rcom's mobile businesses with Aircel, the company said in a filing to stock exchange.
It said, "Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction.
"Unprecedented competitive intensity in the Indian telecom sector, together with fresh policy directives adversely impacting bank financing for this sector, have also seriously affected industry dynamics. As a result of the various factors aforesaid, the merger agreement has lapsed. The Board approved the same."
Asset Monetisation Plan
Now, RCom will evaluate an alternate plan for its mobile business, through optimisation of its spectrum portfolio and adoption of a 4G focused mobile strategy.
The company said it also has valuable spectrum across 800/900/1800/2100 Mhz spectrum bands aggregating 200 Mhz, valued at over Rs 19,000 crore for the balance of validity period, based on last auction pricing. RCom "will evaluate opportunities for monetization of the same through trading and sharing arrangements".
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