The enlarged operator created via the imminent merger of Idea Cellular and Vodafone India will officially be known as ‘Vodafone Idea Limited’, Business Today reports. The new name was approved at a shareholder vote on 26 June. Vodafone is expected to own 45.1% of the consolidated business, while Aditya Birla Group, Idea’s controlling shareholder, will hold a 26% stake. Other Idea shareholders will claim the remaining 28.9% stake in the telco.
As previously reported by TeleGeography’s CommsUpdate, the merger was expected to be completed by 30 June, but has been delayed by a fresh demand of around INR47 billion (USD692 million) from the Department of Telecommunications (DoT), relating to Vodafone’s restructuring in 2015.
TeleGeography notes that the combination of the two operators – India’s second and third largest mobile players by subscribers – will leapfrog market leader Airtel to assume pole position in the wireless sector. Following the tie-up, Vodafone Idea Limited will account for roughly 433.91 million subscribers, based on official 1Q18 data.