Telecom giant Vodafone has brought in Martin Pieters — former managing director (MD) and chief executive officer (CEO) of its Indian arm — to work on the proposed merger of Vodafone India with Idea Cellular.
Group Chief Vittorio Colao is likely to brief all business heads of the Indian arm over a conference call next week about the merger. “Pieters has reached India to oversee the proposed merger of Vodafone India with Idea Cellular. Vittorio will brief all business heads of Vodafone India over a conference call on the merger in this month only”.
Pieters, longest serving CEO of a telecom firm in India, stepped down in 2015, will be succeeded by present Vodafone India MD and CEO Sunil Sood. If the deal is successful, the combined entity will create the largest telecom player in the country, with revenue share of around 40 per cent and subscribers base of 380 million, according to India Ratings and Research.
The combined entity in the present scenario will breach the spectrum cap in 900 MHz band in Maharashtra, Gujarat, Kerala, Haryana and UP West. And in the 2500 Mhz band in Maharashtra and Gujarat, it said. CLSA estimated that the excess spectrum which would need to be surrendered or sold off is valued around Rs 5,400 crore and for the merger both the companies will also have to shell out Rs 5,700 crore for liberalising radio-waves that they were allocated administratively.
CLSA- CLSA Ltd. (formally Credit Lyonnais Securities Asia) is a brokerage and investment firm focused on institutional brokerage, investment banking and asset management for corporate and institutional clients around the world. ... In 2013, CITIC Securities, China's largest investment bank acquired CLSA for US$ 1.3 billion.
Vodafone Group is a British multinational telecommunications company, with headquarters in London. Among mobile operator groups globally, Vodafone ranked fifth by revenue and second (behind China Mobile) in the number of connections. Vodafone owns and operates networks in 26 countries and has partner networks in over 50 additional countries.
Idea Cellular commonly referred to as simply Idea, is an Indian mobile network operator based in Mumbai, Maharashtra. Idea is a pan-India integrated GSM operator offering 2G,3G and 4G mobile services. Idea is India’s third largest mobile operator by subscriber base. Idea has 191 million subscribers as of 31 December 2016.