Merger with Aircel soon, says RCom

New Delhi, June 23 

“The deal is almost in final stage. Synergies between the two companies have been worked. The merger should be announced within 10-15 days. The resultant entity will have revenue of about Rs 25,000 crore from day 1,” said a source.

In a BSE filing today, RCom said Maxis Communications Berhad and Sindya Securities and Investments, the shareholders of Aircel, expect to sign binding definitive documentation and announce the proposed transaction for the combination of the Indian wireless business very shortly.

Last month, the two firms had decided to extend by 30 days the discussion period for their possible merger.

“RCom and Aircel have had nil free cash flow since long time but the resultant entity is being structured in a manner to have Rs 4,000 crore free cash flow which it can use for investments in network,” the source said.

RCom’s net debt at the end of 2015-16 was Rs 41,362.1 crore. Debt of Aircel could not be ascertain. At the end of last fiscal, RCom’s consolidated revenue stood at around Rs 22,000 crore.

RCom and Aircel talks, if successful, would lead to a combined entity holding 19.3% of the total spectrum allocated to the industry — highest in the country by an entity. — PTI