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Impact of Mergers and Acquisitions on Stock Prices: A Case Study
, Varun Dawar, Ashish Varma, Arit Chaudhury
Published in THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
2017
Volume: 52
   
Issue: 10
Pages: 68 - 72
Abstract

The boards of Vodafone India (India’s number 2 telecom operator) and Idea (India’s number 3 telecom operator) announced their merger on March 20, 2017 to create India’s largest telecommunications company with almost 400 million customers, 35%customer market share and 41% revenue market share. Under the proposed merger, Vodafone will own 45.1% of the combined company after transferring a 4.9% stake to the Aditya Birla Group for INR 39 billion (US$579 million) in cash, concurrent with completion of the merger. The Aditya Birla Group will then own 26.0%of the combined company and Idea’s other shareholders will own the remaining 28.9%.Furthermore, Aditya Birla Group would have the right to acquire up to a 9.5% additional stake from Vodafone so that both partners can have equal stakes in terms of shareholding.

About the journal
JournalThe Management Accountant Journal
PublisherTHE INSTITUTE OF COST ACCOUNTANTS OF INDIA
ISSN0972-3528
Open AccessYes