The proposed sale of 3,400 mobile towers by Bharti Hexacom to Indus Towers for Rs 1,134 crore has been put on hold following objections raised by minority shareholder Telecommunications Consultants India Ltd (TCIL). The state-run entity, which holds a 15 percent stake in Bharti Hexacom, was not consulted during the initial valuation and approval process, ETTelecom reported, citing a government source.
Also Read: Bharti Hexacom to Revalue Telecom Towers Amid TCIL Objections: Report
Bharti Airtel and Hexacom Boards
In the first week of February, the boards of Bharti Airtel and Bharti Hexacom had approved the sale of their respective telecom tower portfolios to Indus Towers—a group company—for Rs 2,147.6 crore and Rs 1,134 crore, respectively. However, TCIL has now insisted that the sale be conducted through an open bidding process to ensure transparency and broader participation.
Fresh Valuation
The deal is being worked out afresh and TCIL has now been engaged in the process, the source was quoted as saying.
"TCIL was not kept in loop about sale of Bharti Hexacom mobile towers to Indus Towers. The deal was limited for transactions among group firms only. TCIL wants the sale to take place through an open bidding process where other players can also participate," the source said, as mentioned in the report.
Stakeholder Involvement Initiated
In light of TCIL's concerns, a fresh process is being initiated. TCIL has now been formally involved in the valuation and decision-making for the revised deal. It holds a 15 percent stake in Bharti Hexacom, a subsidiary of Bharti Airtel.
Also Read: Bharti Hexacom Puts Infrastructure Business Sale to Indus Towers on Hold
Airtel Reaffirms Commitment to Transparency
An Airtel spokesperson was quoted as saying, "We remain convinced about the business logic and merits of the proposal, which also received endorsement and strong support from our shareholders and proxy agencies. However, in line with our commitment to 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."
