Idea Cellular will hold a meeting of shareholders and creditors on 12 October to seek their approval for the merger of Vodafone India’s business with itself.
The meeting of equity shareholders, secured creditors and unsecured creditors will be held in Gandhinagar, Gujarat. It is being convened following directions of the National Company Law Tribunal (NCLT) bench at Ahmedabad, Idea Cellular said in a regulatory filing.
The meeting is being held “...for the purpose of considering and if thought fit, approving with or without modification, the arrangement embodied in the composite scheme of amalgamation and arrangement among Vodafone Mobile Service Ltd and Vodafone India Ltd and Idea Cellular Ltd,” it said.
The company will start seeking shareholder’s nod through postal ballot and e-voting from 12 September and close the process on 11 October.
Idea had approached NCLT on 8 August after the Securities and Exchange Board of India (Sebi) and exchanges gave their conditional nod to the proposed $23-billion merger deal that would create the country’s largest telecom operator.
The scheme, if approved at the meeting 12 October, will be subject to the subsequent approval of NCLT. The combined entity is expected to create a mobile services behemoth with nearly 400 million users and 35% market share in terms of customers, toppling Bharti Airtel from its current pole position.
The deal gives Vodafone India an implied enterprise value of Rs82,800 crore and Idea Rs72,200 crore. Post the transaction, the British firm will own 45.1% stake in the merged entity while the Aditya Birla Group, Idea’s parent, will own 26% after paying Rs3,874 crore in cash for a 4.9% stake. The remaining 28.9% stake will be held by other shareholders.
NCLT has appointed Justice M S Shah, former Chief Justice of the Bombay High Court and in his absence Arun Thiagarajan, an independent director of the applicant company, to be the chairman of the said meeting.