LIVE TV DownloadNews18 App
News18 English
»
1-min read

Indus Towers, Bharti Infratel Will Merge to Create Listed Pan-India Tower Juggernaut

The combined company will own 100 per cent of Indus Towers. Indus Towers is currently jointly owned by Bharti Infratel (42 per cent holding), Vodafone (42 per cent), Idea Group (11.15 per cent) and Providence (4.85 per cent).

PTI

Updated:April 25, 2018, 10:23 AM IST
facebookTwittergoogleskypewhatsapp
Indus Towers, Bharti Infratel Will Merge to Create Listed Pan-India Tower Juggernaut
Picture for representation.
Loading...
New Delhi: Bharti Airtel, Idea Cellular and Vodafone Group on Wednesday announced an agreement for a merger of Indus Towers and Bharti Infratel to create the largest mobile tower operator in the world outside China with over 163,000 towers across 22 telecom service areas.

"The combined company, which will fully own the respective businesses of Bharti Infratel and Indus Towers, will change its name to Indus Towers Limited and will continue to be listed on Indian Stock Exchanges," Bharti Group said in a statement announcing the joint deal.

The combined company will own 100 per cent of Indus Towers. Indus Towers is currently jointly owned by Bharti Infratel (42 per cent holding), Vodafone (42 per cent), Idea Group (11.15 per cent) and Providence (4.85 per cent).

Post the deal, Bharti Airtel and Vodafone will jointly control the combined company, and the transaction is expected to close before the end of 2018-19, subject to statutory approvals.

The deal gives Idea Group an option to sell its 11.5 per cent stake in Indus Towers for cash or in lieu of receiving new shares.

Providence too has the option to receive cash or shares for 3.35 per cent of its 4.85 per cent shareholding in Indus Towers with balance exchanged for shares, the statement added.

Detailing out the structure of the deal, it said, Vodafone will be issued 783.1 million new shares in merged entity in exchange for its 42 per cent stake in Indus Towers, and this could take its holding to 29.4 per cent in new company depending on options finally taken by Idea and Providence.

Similarly, Airtels stake in newly combined tower behemoth may be diluted to 37.2 per cent in the combined entity from 53.5 per cent it currently holds on Bharti Infratel.

The new company will be the largest tower company in the world outside China, the statement added.

The transaction values Indus Towers at enterprise value of Rs 71,500 crore, the statement said adding that the merger ratio is 1,565 shares of Bharti Infratel for every 1 Indus Towers share.
| Edited by: Puja Menon
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 213.55 -2.49
Reliance 1,220.10 -1.96
ITC 274.70 -1.93
Dr Reddys Labs 2,565.55 0.09
TCS 1,970.30 -2.93
Company Price Change %Gain
Emami 355.05 -1.61
Yes Bank 213.15 -2.54
Reliance 1,219.75 -1.91
Rel Capital 152.80 2.86
Dewan Housing 128.90 4.67
Top Gainers
Company Price Change %Gain
Bharti Infratel 317.05 3.31
Zee Entertain 438.95 1.76
ONGC 137.10 1.56
Axis Bank 693.30 0.98
NTPC 137.45 0.88
Company Price Change %Gain
ONGC 137.10 1.48
Tata Motors 163.00 1.18
Axis Bank 692.60 0.88
NTPC 136.85 0.48
IndusInd Bank 1,516.95 0.47
Top Losers
Company Price Change %Gain
TCS 1,970.30 -2.93
Yes Bank 213.55 -2.49
Indiabulls Hsg 623.50 -2.48
Bajaj Finserv 5,885.15 -2.33
Coal India 215.15 -2.18
Company Price Change %Gain
TCS 1,971.75 -2.91
Yes Bank 213.15 -2.54
ITC 274.15 -1.95
Sun Pharma 415.10 -1.94
Reliance 1,219.75 -1.91

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results