For Quick Alerts
For Daily Alerts

RCOM Shares Slump 7% As Deal With Aircel Called-Off


Shares in Reliance Communications dropped as much as 7 per cent, as the company called-off a deal with Aircel. The shares were last seen trading at Rs 17.85, a drop of 7 per cent on the National Stock Exchange.

RCOM Shares Slump 7% As Deal With Aircel Called-Off
Investors remained worried over the huge debts on the books of the company, following the cancellation of the deal. The company has cited legal and regulatory uncertainties as some of the reasons for pulling out of the deal. Check stock quote of RCOM here

Had the merger gone through, it would have created India's third-largest telecom provider.

"RCOM and Aircel Limited (Aircel) had signed binding agreements in September 2016 for the merger of RCOM's mobile businesses with Aircel. Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction," the company said in a release.

The board would now look at alternate plans for the mobile business, including debt reduction plans. The company has spectrum worth Rs 19,000 crores, and also plans to monetize land banks and cell towers that it has.

Story first published: Tuesday, October 3, 2017, 9:59 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more