RCOM-Aircel merged entity to be called Aircom; both companies to hold equal stake in the venture

Reliance Communications (RCOM) has stated that the wireless company to be formed upon its merger with Aircel will be called Aircom. According to RCOM, the merged entity will enjoy substantial benefits of scale and capex and opex synergies, and will have an estimated net present value of Rs 200 billion. As a result of this transaction, RCOM’s overall debt will reduce by Rs 140 billion and the transfer of liability for spectrum instalments will reduce the company’s debt further by Rs 60 billion. Meanwhile, RCOM has also stated that it has received time till December 2017 to close the transactions with Aircel and Brookfield and reduce its debt from Rs 450 billion to Rs 200 billion.