Bharti Infratel-Indus Towers Merger: Vi Receives Rs. 3,760.1 Crore By Selling 11.5% Stake

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Vi (Vodafone-Idea) has sold its 11.5 percent stake to Indus Towers. The telecom operator has received Rs. 3,760.1 crore after selling its stake. The new announcement comes after Indus Tower and Bharti Infratel received approval from National Company Law Tribunal (NCLT).

Vi Receives Rs. 3,760.1 Crore By Selling 11.5% Stake In Indus Tower

 

After this merger, Indus Tower will become the biggest tower company in the world as it has 1,69,000 towers and it will be headed by Bimal Dayal. "Vi had elected to receive cash pursuant to the right available to certain shareholders as per clause 1.2 of Part C of the (merger) scheme...it has received cash consideration of Rs. 3,760.1 crore for its 11.15 percent shareholding in Indus," Bharti Infratel said.

Notably, Indus Towers was formed by Bharti Infratel, Vodafone Group, and Vi (Vodafone-Idea). Now, Bharti Group and Vodafone will have 36.7 percent and 28.12 percent shareholding in the new entity. The newly merged entity will be known as Indus Towers Limited, earlier it was known as Bharti Infratel.

"Further, the (Infratel) Board has allotted 757,821,804 equity shares of Rs. 10/- each to the Vodafone Group and 87,506,900 equity shares of Rs. 10/- each to P5 Asia Holding Investments (Mauritius) Limited (Providence)...aggregating to 28.12 percent and 3.25 percent, respectively, in the post-issue share capital of the company," Vi (Vodafone-Idea) said.

Vodafone-Idea Plans To Raise From Oaktree Capital

Meanwhile, the telecom operator is reportedly planning to raise money from Oaktree Capital Management and Varde Partners. The telecom operator is likely to raise $2 billion from the latter. If that deal goes through then, Oaktree is expected to offer 2. 25 billion to the operator.

In addition, the telecom operator is raising Rs. 25,000 crore from convertible debentures and warrants. Apart from raising money, the telco is planning to raise tariffs by 15 to 20 percent soon, which is expected to affect its user base as Reliance Jio has no plans to increase tariffs soon.

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