RCom, Aircel talks on merger extend again to June 22

NEW DELHI: Anil Ambani-led Reliance Communications (RCom) has said that the company and Aircel has decided to extend by 30 days the discussion period for the possible merger of the two telecom operators.

The talks originally started between two companies on December 22, but both telcos have extended the discussion period for the merger for a 90-day period since December 22.

"Reliance Communications (RCom) announced that, based on the substantial further progress made, RCom, MCB and Sindya have mutually extended the exclusivity period between RCom and Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited (Sindya), the shareholders of Aircel Limited (“Aircel”), by 30 days to June 22, 2016, to consider the potential combination of the Indian wireless business of RCom and Aircel and mutually derive the expected substantial benefits of in-country consolidation, including opex and capex synergies and revenue enhancement," the company informed BSE Ltd. (Bombay Stock Exchange).

The discussions, though at advanced stage, are non-binding in nature. Any transaction is subject to completion of due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result.