Vodafone agrees to complete Indus Towers merger

Vodafone has agreed to complete the merger of Indus Towers and Bharti Infratel in a long-delayed deal that would value its stake in the combined company at about €1.7bn (£1.5bn).

The FTSE 100 telecoms company said it would receive 760m shares in the combined company for its 42% holding in Indus Towers. Vodafone Idea, the UK company's struggling venture in India, will receive about €464m in cash at current values for its 11.15% stake.

Vodafone will own 28.2% of the combined company with a value of about 151bn rupees (€1.7bn) and Bharti Airtel's stake in Bharti Infratel will be diluted to 36.7% from 53.5%. Vodafone and Bharti Airtel will jointly control the company.

The merger to form an Indian phone tower giant was first announced more than two years ago but has been delayed by regulatory hurdles and the Covid-19 crisis. The joint company is reported to operate more than 160,000 towers across India.

Vodafone shares fell 2.6% to 108.59p at 09:16 BST.