Vodafone and Idea have recently confirmed that they are in talks of merging the two entities to create a behemoth of around Rs 80,000 crore.
According to a media report, Kumar Mangalam Birla, who heads Aditya Birla Group, may be appointed as the Chairman of the new entity which will have a subscriber base of more than 40 crore in the country, replacing current player Bharti Airtel, which currently has over 26 crore users on its network, from the top spot.
News website Livemint, citing two people privy to the development, reported that Kumar Mangalam Birla appears to be the ‘unanimous’ choice for Chairman of the new group.
Besides, the talks between the two sides have gained momentum with both agreeing on having 12 directors on its board -- three from either side and six independent ones.
The report also said that Vodafone's holding in the company could be less than 51 per cent but more than the Aditya Birla Group's.
It further speculated that the merged entity could use the Vodafone brand under licence from the Vodafone Group.
Vodafone India has over 20 crore subscribers, with a presence in all the 22 circles the country has been divided into. It intends to have 4G services in 17 circles, covering 2,400 towns, by the end of this fiscal.
Idea, on the other hand, too has a similar subscriber base, also with a presence in all the 22 circles. It intends to have 4G services in 20 circles by March 2017.
Industry speculation over a possible merger has been doing the rounds for nearly a year and intensified after Reliance Jio entered the market with its mega voice and data offer, with an announcement that voice will be free on its network for life.
Latest Business News
