Vodafone Idea board approves merger of two subsidiaries with the company

VIL’s board of directors has approved a scheme of amalgamation of its two wholly owned subsidiaries, Vodafone India Digital Limited (VIDL) and Idea Telesystems Limited (ITL), with the company. This will not result in any change in VIL’s shareholding pattern. The rationale behind the scheme is simplification of the corporate structure, efficient and economical management of the businesses of the subsidiaries, elimination of duplication in administrative cost, and achieving economies of scale. While VIDL is a wholly owned subsidiary of VIL, the transferee company, and is a non-operating company, ITL is primarily engaged in the business of wholesale trading of data cards. The amalgamation scheme is subject to approval of the NCLT, Ahmedabad, besides other regulatory authorities.