 "Vodafone Idea board approves merger of 2 subsidiaries with parent")
Vodafone Idea said on Tuesday its board has approved merger of two wholly-owned subsidiaries, Vodafone India Digital Limited and Idea Telesystems Limited, with the company.
"The scheme is subject to approval of the National Company Law Tribunal, Ahmedabad, besides other approvals as applicable, if any," Vodafone Idea said in a BSE filing.
Idea Telesystems is primarily engaged in the business of wholesale trading of data cards, while Vodafone India Digital is a non-operating company.
"The Board of Directors of Vodafone Idea Limited at its meeting held on May 13, 2019, has considered and approved a Scheme of Amalgamation of Vodafone India Digital Limited and Idea Telesystems Limited (both wholly owned subsidiaries of the company) with the company under the relevant provisions of the Companies Act," the filing said.
The amalgamation would, lead to simplification of the corporate structure, and efficient and economical management and control over the running of businesses of the subsidiaries, it said.
Other benefits include cost savings (removing duplication in administrative cost and multiple record keeping), increased operational efficiencies and administrative convenience, and optimal utilisation of resources, it added.
