Bharti Infratel Ltd., the wireless phone tower form controlled by India’s No. 2 carrier announced a merger with rival Indus Towers Ltd. In a deal which includes 40 billion rupees ($543 million) for the stakes owned by debt-stricken Vodafone Idea Ltd.
Bharti #Infratel board gives nod for merger with indus tower
— Aseem Manchanda (@aseemmanchanda) September 1, 2020
In an official statement delivered by the company categorically mentioned Bharti Infratel and Vodafone-Idea’s shareholding amounts which are 68.6% and 28.2% respectively. The percentage are subject to change based on closing adjustments.
Bharti Infratel has decided to merge with Indus in 2018 and had also received regulatory approval the following year. Supreme Court also left Bharti Infratel and Vodafone-Idea with debt as huge as billion of dollars of worth of unpaid dues. This debt complicated the business deal between two companies as both were needed to raise money.
Vodafone Idea, formed by the merger of Vodafone Group’s local unit and billionaire Kumar Mangalam Birla’s Idea Cellular Ltd., hasn’t reported an annual profit since announcing their combination in 2017. Birla, its chairman, warned in December that the company may not survive without government help in paying overdue fees and taxes.
Reliance industries Ltd. completed its controlling stake in Reliance Jio Infratel Pvt. of worth $3.4 billion to the investors including Brookfield Infrastructure Partners L.P.
As per company’s statement, investment comprises about 135,000 communication towers that make up Reliance Jio Infocomm Ltd.’s network in India.