Official Sources said the company has intimated the Department of Telecom of its decision to merge with Spice Communications and DoT can only look at the proposal once the merger (or amalgamation) is complete.
However, telecom Secretary Siddarth Behura had yesterday said only in case of merger of two licences, like in case of merger of Idea Cellular and Spice Communication in Punjab, a prior approval of DoT is required.
Idea Cellular (Idea), on June 25 announced that it would be acquiring the Spice Group's stake of 40.8 per cent in Spice Communications (Spice) at a price of Rs 77.30 per share.
Idea and Telecom Malaysia International (TMI) along with their affiliates and associates (as persons acting in concert), will also make an Open Offer in August for an additional 20 per cent stake in Spice at Rs 77.30 per share.
The boards of Idea and Spice have also approved the merger of Spice into Idea through a Scheme of Arrangement under Section 391 to Section 394 of the Companies Act, subject to finalisation of the merger, the approvals of the respective shareholders, creditors and the respective High Courts of Gujarat and New Delhi.
Pointing out the benefits of the transaction, the company said it would gains entry in the contiguous wireless markets of Punjab and Karnataka, which account for 11 per cent of India's total wireless subscribers where Spice has 4.4 million subscribers.
