Tower companies Bharti Infratel and Indus Towers have sought exit charges following Vodafone Idea merger that led to two tenancies on a single tower being converted into one, and negotiations are on in this regard, the newly merged telecom firm said Wednesday. Prior to the mega-merger, both entities - Vodafone and Idea - had tenancies on the same tower of various infrastructure service providers, including Indus Towers and Bharti Infratel.
"Post the merger, these two tenancies on a single tower have been converted to a single tenancy with a higher loading as per the terms of the Master Service Agreement. Both Bharti Infratel and Indus have raised demands for exit charges on the company on account of this change and for which the company is in negotiation with them," it said in a regulatory filing.
Last year, Idea and Vodafone completed USD 23.2 billion (about Rs 1.6 lakh crore) merger of their India operations to create the country's largest telecom operator to take on competition from Reliance Jio. Vodafone owns 45.2% stake in the newly-minted entity while Aditya Birla Group, Idea's parent company, holds 26% stake.
A few days ago, we reported that Bharti Infratel and Indus Towers merger would be finalised in the upcoming financial year.