Tuesday, May 26, 2009

RCom shareholders okay demerger of optic fibre business

26 May 2009, 1656 hrs IST, IANS on www.economictimes.com

MUMBAI: Reliance Communications (RCom), India's second largest telecom operator, Tuesday said it has received approval from its shareholders for the demerger of its optic fibre division and subsequent merger with wholly-owned subsidiary Reliance Infratel. "The demerger will help reduce set-up and operating costs resulting in cost efficiency coupled with greater financial flexibility," the company said in a regulatory statement.
Moreover, the segregation of business into providing telecommunications services and infrastructure will enable both the companies to concentrate on their core businesses, the statement added.

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