Indus Towers and Bharti Infratel merger set to go ahead
The merger between Indus Towers which is 42%-owned by Vodafone and Bharti Infratel is now set to proceed after the telecommunication company's lenders granted their consent for a 'security package' for the new company.
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Said package was meant to protect the new company should Vodafone Idea be unable to meet certain obligations under its Master Services Agreement and would be supported entirely by consideration from the transaction.
That had been the condition set for the merger to proceed and the parties would now approach the National Company Law Tribunal to make the merger effective.
Under the terms of the merger, Vodafone Idea would cash in its 11.15% stake in Indus Towers, with Bharti Airtel and Vodafone retaining joint control of the new entity.
Bharti Airtel was to retain a stake of 36.7% in the combined company and Vodafone a further 28.2%.
As of 1 September, Vodafone's stake in the combined company was estimated to have a valuation of approximately €1.7bn based on Bharti Infratel's then market value.