5 Minutes Read
Airtel to merge Bharti Infratel and Indus Towers
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
Telecom giant Bharti Airtel on Wednesday said it would merge Indus Towers with Bharti Infratel, to create a single telecom service company with an enterprise value of Rs 71,500 crore. The combined entity will be named Indus Towers Limited, and will continue to be listed on Indian stock exchanges, Bharti Airtel said in an exchange filing. Shares …
Continue reading “Airtel to merge Bharti Infratel and Indus Towers”
Telecom giant Bharti Airtel on Wednesday said it would merge Indus Towers with Bharti Infratel, to create a single telecom service company with an enterprise value of Rs 71,500 crore.
The combined entity will be named Indus Towers Limited, and will continue to be listed on Indian stock exchanges, Bharti Airtel said in an exchange filing.
Shares in Bharti Airtel were up about 2.4% at 0930 IST on the Bombay Stock Exchange.
Bharti Infratel and Vodafone own a 42% stake in Indus, while Idea has a 11.15% stake. Providence has a stake of 4.85% in the company.
As part of the deal, Vodafone will be issued with 783.1 million new shares in the combined company, in exchange for its 42% shareholding in Indus Towers.
Idea Group will sell its stake in Indus, and receive Rs 6,500 crore in cash upon completion of the scheme.
The telecom group also has the option to retain a 7.1% stake in the combined group, in which case, it will receive 207.9m new shares in lieu of cash.
Providence will receive new shares equivalent to a 1.1% stake in the combined company in exchange for 1.5% out of its 4.85% shareholding in Indus Towers, with an option to sell or retain its remaining stake.
Indus Towers currently operates in 15 telecom service areas, commonly known as circles, while Bharti Infratel has operations in seven circles.
The merger will allow the company to operate 163,000 towers operating across all 22 circles in India, and make it the largest telecom tower company outside China.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
