Vodafone-Idea merger likely to get nod from telecom department today

Debt-ridden Idea Cellular and Vodafone India will get a breather from a merger deal that is likely to get a nod from the telecom department today. The deal will pave way for largest mobile service operator in the country with the proposed name of Vodafone Idea Ltd.

"DoT is expected to clear the Vodafone-Idea merger on Monday. The certificate will be handed to them," an official source told PTI.

Idea and Vodafone will merge their operations to create the country's largest telecom operator worth over USD 23 billion (or over Rs 1.5 lakh crore). The merge will enjoy a 35 per cent market share and a subscriber base of around 430 million.

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Idea Cellular and Vodafone India reel from a combined debt estimated at around Rs 1.15 lakh crore.

"The merger will be taken on-record after Idea furnishes required bank guarantee and gives an undertaking of owning the liabilities of Vodafone India that may arise in future," the source said.

Vodafone will own 45.1 per cent in the combined entity, while Kumar Mangalam Birla-led Aditya Birla Group would have 26 per cent and Idea shareholders 28.9 per cent respectively.

Birla is proposed to be the non-executive chairman of the merged entity and Balesh Sharma is likely to be named the new CEO.

Idea's chief financial officer Akshaya Moondra will head the financial operations of the new entity as its CFO. Ambrish Jain, currently the deputy MD at Idea Cellular, is set to become the new chief operating officer.

Idea Ltd. will hold a general meeting on June 26 to change its name to Vodafone Idea Limited following the completion of the merger.

(With inputs from PTI)