Kumara Mangalam Birla will chair the merged company, and Vodafone will appoint a CEO. Vodafone and Idea will have the same stake in the merged entity over a period of time, say bosses from both companies. The merger will enable synergies of $ 10 billion, says Vodafone CEO Vittorio Colao.
Money for the purchase of 4.9 percent of the Vodafone bar (Rs 3,874 crore) will come from promoters and not from Idea, says Kumar Mangalam Birla. The ongoing tax dispute with the government does not affect the merger, says Vodafone CEO.
The combined entity had a net debt of Rs. 1.07 trillion as of December 2016. Vodafone and Idea brands will be able to operate in the future.