Telecom infrastructure provider Bharti Infratel on Tuesday said it will proceed with its merger with Indus Tower, for which the cash consideration comes to around ₹4,000 crore.
"After deliberations the board has decided to authorise the chairman to proceed with the scheme (of arrangement) and to comply with other procedural requirements for completion of the merger including approaching the NCLT (National Company Law Tribunal) to make the scheme effective subject to certain procedural condition precedents,” Bharti Infratel said in a stock filing.
The scheme will become effective on the date on which the certified copy of the order of NCLT is filed with the Registrar of Companies, it said.
Based on the adjustments reflecting current facts and circumstances, the likely shareholding structure in the merged company could be — Vodafone 28.2 per cent and private equity firm Providence 3.2 per cent; total for Indus share swap 31.4 per cent and current Infratel shareholders 68.6 per cent.
Indus Towers is a three-way joint venture between Bharti Infratel, Vodafone (UK) and Vodafone Idea.
Vodafone Idea has been banking on this tower merger to raise around ₹4,500 crore towards its adjusted gross revenue (AGR) dues amounting to around ₹53,000 crore. It has made a part payment of around ₹8,000 crore.
The Department of Telecommunications (DoT) had cleared Bharti Infratel's merger deal with Indus in February. The new merged entity would become the world's largest telecom tower company with more than 1.63 lakh towers.
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