Executives from the UK's Vodafone Group PLC, who served as non-executive directors on the board of Indus Towers, have resigned following Bharti Airtel’s increase in its stake to over 50 percent in the tower company. With the increased stake, Indus Towers is set to become a subsidiary of Bharti Airtel.
Also Read: Bharti Airtel Gets CCI Approval to Raise Indus Tower Stake Over 50 Percent
Vodafone Executives Step Down from Indus Board
Former Vodafone Idea Managing Director and CEO Ravinder Takkar, along with former CEO Sunil Sood, have stepped down from the Indus Towers board. Additionally, Thomas Reisten, a former Vodafone PLC executive, has also tendered his resignation, according to a notice filed by Indus Towers on Monday after market hours.
"The said resignations are in accordance with the provisions of the Company’s Articles of Association, following the cessation of the Board Appointment Rights of the Vodafone Shareholders in the Company," Indus Towers stated in the filing.
CCI Approves Airtel's Shareholding Increase
Following the buyback exercise, Airtel's shareholding in Indus Towers—a joint venture company—increased to approximately 50.005 percent, giving Airtel a majority stake in the telecom tower company. Under the Companies Act, 2013, a company becomes a subsidiary when another company holds more than 50 percent of its total share capital or controls the composition of its board of directors. Indus Towers had disclosed this development in an exchange filing in August.
India's Competition Commission of India (CCI) approved Bharti Airtel's increased shareholding in Indus Towers Limited in October, following the share buyback by the telecom infrastructure company.
Also Read: Indus Towers to Become Bharti Airtel Subsidiary After Buyback Exercise
Indus Towers
Indus Towers is a passive telecom infrastructure provider that deploys, owns, and manages passive infrastructure for various mobile operators. The company concluded the quarter ending September 30, 2024, with a net profit of Rs 2,224 crore, a total tower base of 229,658, and a closing sharing factor of 1.65.
