Vodafone India today said that it completed its merger Idea Cellular to create the largest telecom company in the country.
Kumar Mangalam Birla, Chairman Aditya Birla Group, and Vodafone Idea Limited said: "Today, we have created India's leading telecom operator. It is truly a historic moment. And this is much more than just about creating a large business. It is about our Vision of empowering and enabling a New India and meeting the aspirations of the youth of our country."
"The "Digital India", as our Honourable Prime Minister describes it, is a monumental nation-building opportunity. As Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale, and standards," he said.
The merger is expected to generate Rs.140 billion annual synergy, including opex synergies of Rs. 84 billion, equivalent to a net present value of approximately Rs.700 billion.
According to the official statement, the entity will have 1850 MHz of total spectrum holding, over 200,000 unique GSM sites and 235,000 km of fiber, the merged company offers superior voice and broadband connectivity across the country, covering 92 percent of the population and reaching nearly 500,000 towns and villages.
Balesh Sharma, the CEO, Vodafone Idea Limited, said, "As India's leading telecom operator with two popular and loved brands, the company has the scale and resources to ensure sustainable customer choice and introduce new technologies. We are committed to offering both our retail and enterprise customers an excellent experience while fulfilling their evolving digital and connectivity needs via new products, services, and solutions. We will offer them more network coverage, more value and more excitement. My team and I look forward to your continuing support and invite you to enjoy the Vodafone Idea experience."
Additionally, the company has an option to monetize an 11.15 percent stake in Indus, which would equate to a cash consideration of Rs. 51 billion.