Bharti Hexacom, a subsidiary of Bharti Airtel, is likely to initiate a fresh valuation of its 3,400 telecom towers before inviting new bids from tower infrastructure companies. The company plans to conduct the sale process in a transparent and competitive manner, adhering to the guidelines laid down by the Department of Investment and Public Asset Management (DIPAM) and regulations of the Securities and Exchange Board of India (SEBI), ETTelecom reported, citing people familiar with the matter.
Also Read: Bharti Hexacom Puts Infrastructure Business Sale to Indus Towers on Hold
TCIL's Objections Halt Previous Deal
The move follows objections raised by state-run Telecommunications Consultants India Ltd (TCIL), a key minority stakeholder in Bharti Hexacom, over the previous Rs 33-lakh-per-tower valuation determined by Grant Thornton. The earlier sale plan, which involved a transaction with Indus Towers, has been put on hold amid these concerns and governance-related differences between Bharti and TCIL, TelecomTalk previously reported.
"In line with transparency and robust corporate governance, we have agreed to put the current proposal in abeyance and initiate a fresh process as required by our significant minority shareholder TCIL," a Bharti Airtel spokesperson was quoted as saying in the report. However, the spokesperson maintained that the company "remains convinced about the business logic and merits of the earlier (Bharti Hexacom) proposal," which had received support from shareholders and proxy advisory firms.
Also Read: Indus to Acquire Telecom Towers of Bharti Airtel and Hexacom for Rs 3,308.7 Crore
Bharti Airtel holds a 70 percent stake in Bharti Hexacom, while TCIL owns 15 percent. Bharti Hexacom operates mobile services in Rajasthan and the Northeast.
Indus Towers Deal: What's Pending
Under the initial agreement announced in February, Indus Towers was to acquire 16,100 telecom towers from Airtel and Bharti Hexacom in a Rs 3,308.7 crore all-cash deal. While Indus completed the acquisition of 12,700 towers from Airtel, the purchase of Bharti Hexacom's 3,400 towers remains pending.
