NCLT approves RCom-Aircel merger, allows Brookfield Towers sale

The National Company Law Tribunal (NCLT) on Monday passed an order allowing the Aircel-Reliance Communications merger and also the Brookfield Towers sale to proceed.

According to sources, the tribunal overruled objections of Bharti Infratel, GTL and Ericsson.

The NCLT also allowed Reliance Communications (RCOM) tower arm 51 per cent stake sale to Brookfield for Rs 11,000 crore.

RCOM and Aircel had signed a definitive document for a proposed merger scheme of their respective wireless businesses on September 14, 2016. Subsequently, the two telecom operators moved all the relevant statutory and regulatory bodies for approval of the merger scheme. The Competition Commission of India gave its approval to the merger scheme in February 2017.

The two transactions will bring down RCOM debt by Rs 25,000 crore, or 60 per cent.

Sources said the merger scheme before the NCLT-Mumbai Bench will see the final order being passed on September 13, 2017.

RCOM's shares were trading at Rs 23.85 per share, up 14.94 per cent in the BSE at 2.30 pm.