What will be the impact of Route Mobile-Proximus deal? Nikhil Choudhary answers

economictimes.indiatimes.com:

«Basically we are looking at the deal to be more or less neutral given it is announced close to the current market price,» says Nikhil Choudhary, Nuvama Institutional.What is your first take as far as this deal is concerned do you see it as a bit of a negative for the minority shareholders?Basically we are looking at the deal to be more or less neutral given it is announced close to the current market price. This will provide Route entry into the developed market given Route's primary revenue base is currently in the emerging market. This will help them scale from a distant fifth, sixth number player to now a third communications service provider player.

And this will also provide synergy benefit in the next three years. The combined entity will generate close to 19 million Euro in combined synergy. So that will also be positive in medium to long term.

That is basically from the current transaction perspective.The commentary coming in from the Guptas about how this transaction will provide further growth figures for the company. Did you go through that? How much time do you think it will take for management to really fructify all of that which is being promised via this transaction?For now, in the short term, I think in FY24 it will be more or less organic revenue based which we think Route continue to do much better than anyone's expectations. Going forward, we do believe they will benefit from the combined entity given both the companies have limited overlap.