May 14, 2019
CCI Approves Acquisition by UV Asset Reconstruction Co. Limited of Aircel Limited and its Subsidiaries
On March 7, 2019, CCI approved the proposed acquisition by UV Asset Reconstruction Company Limited (‘UV ARC’) of 74% of the entire paid up share capital each of Aircel Limited and its two wholly owned subsidiaries, Aircel Cellular Limited and Dishnet Wireless Limited, (‘Aircel Targets’) (‘Proposed Combination’).[1] UV ARC and Aircel Targets have been collectively referred to as ‘Parties’.
The notice to CCI was filed pursuant to a resolution plan dated December 29, 2018, under the Insolvency and Bankruptcy Code, 2016. Aircel Targets voluntarily filed an application for insolvency with the National Company Law Tribunal (‘NCLT’), Mumbai Bench on February 28, 2018.
UV ARC is an asset reconstruction company engaged in the business of acquiring non-performing assets from banks and financial institutions and resolving the assets acquired with a resolution strategy as it deems fit. Aircel Targets were engaged in the provision of telecommunication services in mobile telephony services, internet/data services and mobile wallet services across India and were stated to not be in operation for the past eight to nine months.
CCI noted that none of the companies in which UV ARC held investments have any horizontal or vertical overlaps with the Aircel Targets and accordingly approved the Proposed Combination.
[1] Combination Registration No. C-2019/02/642