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.
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