NEW DELHI: Bharti Infratel’s board approved Tuesday the long-pending merger with Indus Towers Ltd, first announced in April 2018, to create the world’s largest mobile tower operator outside of China. The deal will allow the cash-hungry Vodafone Idea Ltd to sell its 11.15% stake in Indus Towers for ₹4,000 crore, Bharti Infratel said in a statement.
Bharti Airtel Ltd’s tower subsidiary had extended the merger deadline with Indus Towers six times, citing incomplete details for approval.
The merged entity will be called Indus Towers, which until now was a tripartite joint venture between Bharti Infratel, Vodafone Idea and the UK-based Vodafone Group. Both Bharti Infratel and Vodafone each had a 42% stake in Indus Towers.
With the merger, Vodafone will have a 28.2% stake, while Bharti Infratel will have a 68.6% stake in Indus Towers. Provident Equity Partners (PEP), which was an investor in Indus Towers, received new shares for a total of 3.2% interest in the combined entity.
The transaction is subject to approval by the National Court of Company Law (NCLT), Bharti Infratel said in the statement.
Proceeds from the divestment of Vodafone Idea’s stake in Indus Towers will help the company partially pay its installments related to Adjusted Gross Income (AGR). Bharti Infratel had previously raised concerns about the sustainability of Vodaphone Idea based on the Supreme Court’s decision on the phased payment of AGR fees. The sentence will be handed down on Tuesday.
.
