Vodafone lenders approve merger of Indus Towers with Bharti Infratel

Vodafone lenders approve merger of Indus Towers with Bharti Infratel

Lenders to Vodafone Group Plc. have approved the merger of Indus Towers Ltd and Bharti Infratel Ltd, the UK-based company said on Monday.

The agreement to proceed on the deal has been given on the condition of a consent for a security package for the merged entity from Vodafone’s existing lenders, it said. The consent was sought on the €1.3 billion loan used to fund Vodafone’s contribution to the Indian arm Vodafone Idea Ltd’s rights issue in 2019.

Vodafone’s stake in Indus Towers will reduce from 42% to 28.2% with the merger. Bharti Infratel, which also held a 42% stake, will now own 68.6%. Indus Towers was a three-way joint venture among Bharti Infratel, Vodafone Group and Vodafone Idea.

Vodafone Idea will divest its entire 11.15% stake in the merged entity, which will also be called Indus Towers.

Vodafone Idea has cleared ₹7,854 in AGR dues, but still owes more than ₹50,000 crore to the department of telecommunications . The telco needs fresh equity, higher tariff and concession on various government levies to continue operations, said telecom experts.

Tap To Explore More : Economic Times

Also Read : SEBI Sets Similar Deadlines For Listing Securities On The Basis Of Personal Planning

About The Author