News
Indian operator talks up substantial progress as deadline is pushed back to 22 June.
Reliance Communications has extended exclusive takeover talks with rival Aircel’s parents until 22 June.
In a statement on Saturday the Indian operator said the two sides have made "substantial further progress" negotiating the terms of the proposed merger, but need at least another 30 days to consider synergies and revenue enhancement.
RCom entered into discussions with Aircel owners Maxis Communications and Sindya Securities in late 2015. At the time, the parties agreed to a 90-day exclusivity period; it was extended by 60 days in March.
In February, a local press report claimed RCom and Aircel plan to form a 50:50 joint venture, with each company contributing an equal amount of debt to the new entity, which may be listed a year after it launches.
Sources said at the time that the companies hope to complete the deal by the end of September.
If a merger goes ahead, the combined company will have more than 188 million subscribers, making it India’s third-largest mobile operator behind Vodafone, which has more than 196 million, according to the latest figures from the Telecom Regulatory Authority of India (TRAI).
"The discussions, though at advanced stage, are non-binding in nature. Any transaction is subject to completion of due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result," RCom reiterated on Saturday.
