Reliance Infratel shareholders nod for merger of optic assets
June, 05th 2009
Shareholders of Reliance Infratel today approved the merger of optic assets of its parent Reliance Communications with the company, a move aimed at consolidating its telecom infrastructure business.
The company spokesperson told PTI that the shareholders of Reliance Infratel today approved the merger, which was convened by the Bombay High Court.
Last month, the meeting was held to approve the merger but was adjourned as a couple of investors had requested for additional time for completing their internal review process before giving their views.
"Accepting their request, the meeting was adjourned to be reconvened at a short notice," the company had said.
The spokesperson said all the seven global financial investors in the company approved the merger. Institutional (minority) investors own five per cent in RCom.
Earlier, Reliance Communication's (RCom's) shareholders approved the company's decision of de-merger of its optic fibre division, to facilitate its merger with Reliance Infratel.
RCom, the second-largest telecom operator in India, had said that with the proposed severance of business, leading to separation of telecommunications services and infrastructure, both Reliance Communications and Reliance Infratel would be able to focus on their core businesses.
It believes the demerger will help reduce set-up and operating costs resulting in cost efficiency coupled with greater financial flexibility.