NEW DELHI: Reliance Communication on Wednesday said that it has filed an application for withdrawal of Scheme of Aircel merger with the NCLT on October 3, along with another application for the withdrawal of the scheme of the demerger of the tower business under RITL.
The Anil Ambani-led telco said that the RITL tower demerger scheme will be taken up for application with the required changes. “The company shall issue the relevant notifications at an appropriate future date,” it added.
RCom had last week called off its merger with Aircel, citing regulatory uncertainties and hinting at sabotage by “vested interests”, dealing a severe blow to the hopes of the two debt-ridden telcos to better take on stronger rivals Bharti Airtel and Reliance Jio and raising questions on their long-term survival.
RCom and Aircel – struggling under falling revenue, increasing losses and a shrinking user base and debt of over Rs46,700 crore and over Rs20,000 crore respectively – were hoping to combine their wireless businesses and become a stronger fourth player in an Indian telecom market plagued by a brutal price war aggravated by the entry of Reliance Jio which has severely dented industry revenue and profitability and forced rapid consolidation. They had announced a 50:50 JV back in September 2016.