The merger of Vodafone and Idea Cellular will not threaten jobs of employees working in Vodafone India, Vodafone Group CEO, Vittorio Colao has assured.
Colao highlihted the company's commitment towards "creating greater professional opportunities" for its Indian staff in an email to employees in India after the merger announcement.
The board of directors of Idea Cellular at its meeting held today approved the "scheme of amalgamation of Vodafone India Limited (VIL) and its wholly owned subsidiary Vodafone Mobile Services Limited (VMSL) with the company", Idea said in a regulatory filing.
Colao in his email wrote, "I can assure you of the group's commitment to the success of the merger and to creating greater professional opportunities for our Indian colleagues".
On the success of the mega merger, he wrote, "I count on all of you to focus on strengthening Vodafone India in the coming months and in winning in the highly competitive Indian environment".
Colao said that he was confident of the fact that the deal would provide golden oppurtunity for "Vodafone India teams to take part in building a truly impressive company".
"We will have the opportunity to create a very strong management team, thanks to the combined expertise of both companies, he said.
The report further quoted the CEO saying that the combined entity would "benefit from the strength of both brands, based on an identity and brand strategy, which will be defined in detail in closing".
About the merger, he said that it would create a very solid and strong leader in India with a long-term, vision and commitment to bring world-class 4G networks to villages, towns and cities across India.
Vodafone India has 17 circles with 4G capability, covering 90 per cent of the company's total revenues and 94 per cent of mobile data revenues. Also, it has the the largest voice and data traffic usage within the Vodafone Group.
According to the deal, Vodafone would acquire 45 per cent of the combined entity while promoters of Idea would sell 26 per cent stake. After the announcement, the shares of Idea Cellular soared over 14 per cent on Monday. Kumar Mangalam Birla will be the new chairman of the merged entity, while Vodafone will appoint the CFO.
"For Idea shareholders and lenders who have supported us thus far, this transaction is highly accretive, and Idea and Vodafone will together create a very valuable company given our complementary strength," said Kumar Mangalam Birla, Chairman, Aditya Birla Group.