Accounting And Finance::The Accounting and Finance Training Academy is dedicated to promoting professionalism and advancing the standards of accounting and finance application through quality education, research, consulting and practice
|
Untitled Document
Accounting And Finance::The Accounting and Finance Training Academy is dedicated to promoting professionalism and advancing the standards of accounting and finance application through quality education, research, consulting and practice
News
 
 
 
   
 

 

News

Idea Vodafone merger

 The merger creates Vodafone Idea Limited, the largest carrier in India by subscribers and revenue market share.The two companies were facing difficult times because of the price war launched by Jio with deep pockets.Vodafone Group plc is a British multinational telecommunications conglomerate, with headquarters in London and Newbury, Berkshire.It predominantly operates services in the regions of Asia, Africa, Europe, and Oceania.Vodafone India was the Indian subsidiary of UK-based Vodafone Group plc and was a provider of telecommunications services in India with its operational head office in Mumbai. As of March 2018, Vodafone India had a market share of 21% with approximately 223 million subscribers and was the second largest mobile telecommunications network nationally after Airtel. 

The merger has resulted in the creation of the largest mobile services operator in India.The merged entity shall deal with approximately 43 crore subscribers with valuations totalling Rs 1.5 Lakh crores.Vodafone will own 45.1% in Vodafone Idea Ltd, Aditya Birla Group 26% and Idea shareholders 28.9%. The Aditya Birla Group holds a right to acquire up to a 9.5% additional stake from Vodafone so as to equalise shareholdings over time.In case  Vodafone and the Aditya Birla Group’s shareholdings in the combined company are not equal after four years, Vodafone will have to sell down shares in the combined company to equalise its shareholding to that of the Aditya Birla Group over the following five-year period. Until equalization , the voting rights of the additional shares held by Vodafone will be restricted .

Together, Vodafone India and Idea Cellular have debt of around 1.15 trillion equaling over Rs 1 Lakh 15 thousand Crore.

Accounting And Finance