Bharti Infratel-Indus Towers Merger Now Complete, Vodafone Idea Receives Rs 3,760 Crore

Vodafone Idea received Rs 3,760.1 crore as cash for selling its 11.15% stake in Indus Towers. Also, the merger between Indus Towers and Bharti Infratel is now complete

By November 20th, 2020 AT 9:33 AM

The much-awaited merger between Indus Towers and Bharti Infratel is now complete as National Company Law Tribunal (NCLT) approved the merger. Telecom operator Vodafone Idea (Vi) said it received around Rs 3,760.1 crore towards selling its 11.15% stake in Indus Towers. This news is confirmed by Vodafone Idea via an exchange filing late on Thursday. In September this year, it was expected that Vodafone Idea would receive around Rs 4,000 crore for selling its stake in Indus Towers, however, the telco received less than that. Since the merger now secured all the required permissions, Bharti Infratel announced the closing of the deal yesterday.

Vodafone Idea Gets Less Than Expected Amount in Indus Towers Stake Sale

“Vodafone Idea Limited (VIL) had elected to receive cash pursuant to the right available to certain shareholders as per clause 1.2 of Part C of the Scheme. Pursuant to the same, VIL has received cash consideration of Rs. 37,601 nm. for its 11.15% shareholding in Indus. The said transaction had been executed and completed on November 19, 2020 (“VIL closing”),” the company said in an exchange filing, late on Thursday.

For the unaware, Indus Towers was jointly owned by Bharti Infratel, UK-based Vodafone Group and Vodafone Idea. Since Vodafone Idea sold its 11.15% stake in Indus Towers, Bharti Group and Vodafone Group will now have a shareholding of 36.7% and 28.12%, respectively in the merged entity.

Bharti Infratel’s name will now be terminated and the new name for the merged entity would be ‘Indus Towers Limited.’

To recall, the merger between Indus Towers and Bharti Infratel was announced way back in 2018, however, Bharti Infratel pushed the merger to 2020. The proposed merger received approvals from DoT and CCI earlier this year. The newly formed tower company is the “largest tower company in the world outside China.”

Vodafone Idea will now have a slight relief as it will receive some cash for selling the stake in Indus Towers. The financially struggling telecom operator might make use of this cash to pay some part of the AGR dues. According to DoT, the next due date to pay 10% instalment of AGR dues is March 31, 2021.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

guest
14 Comments
newest
oldest
Inline Feedbacks
View all comments

Recent Posts

BSNL Now Offering Free ZING Subscription With Select Prepaid Plans

Bharat Sanchar Nigam Limited (BSNL) is now offering users an over the top (OTT) benefit with its select prepaid plans....

Best Prepaid Plans for Long-Term from Jio, Airtel, Vodafone Idea and BSNL

Prepaid plans with long-term validity are offered by all the major telecom operators of the country. Long-term prepaid plans are...

Tata Sky Broadband 100 Mbps Plan for 6 Months Costs Rs 4,500: Everything You Need to Know

Tata Sky recently revised its broadband plans across the cities where it has operations. The DTH and Internet Service Provider...