You are using an older browser version. Please use a supported version for the best MSN experience.

NCLT admits Reliance Communications’s petition for Aircel merger

LiveMint logoLiveMint 14-08-2017 Malvika Joshi

Mumbai: The National Company Law Tribunal (NCLT) has admitted Reliance Communications Ltd’s (RCom) petition for its merger with telecom firm Aircel Ltd.

The court has also admitted RCom’s petition for a 51% stake sale in its telecom tower arm to Canada-based Brookfield Infrastructure group. While the court will issue final orders on 13 September, in most cases admitting a petition is tantamount to approval said lawyers. RCom’s stock jumped close to 16% after this news broke.

The merger along with strategic stake sale in tower business will allow the Anil Dhirubhai Ambani-led firm to pare about 60% of its total debt of about Rs45,000 crore. A spokesperson for RCom declined to comment as the matter is sub judice.

The firm needs to complete its merger and stake sale in tower business by December. Its creditors have allowed it a moratorium on debt servicing while it completes this restructuring. The merger has already been approved by Securities and Exchange Board of India, Competition Commission of India and the exchanges.

At 2:34pm on Monday, RCom shares were trading at Rs23.9, up 15.2%.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

More From LiveMint

image beaconimage beaconimage beacon