RCom shareholders okay demerger of optic fibre business

May 26th, 2009 - 6:20 pm ICT by IANS  

Mumbai, May 26 (IANS) 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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