InvestorQ : What is the Bharti Infratel deal with Indus Towers?
Rutuja Nigam made post

What is the Bharti Infratel deal with Indus Towers?

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2 months ago
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Bharti Infratel has intimated the stock exchanges that it has decided to proceed with the merger via scheme arrangement with Indus Towers. The board will now approach the NCLT to make the scheme of arrangement effective.

Bharti Infratel has put out the likely shareholding structure post the scheme of arrangement. Vodafone will have 28.2%, Providence Equity Partners will have 3.2% and Bharti Infratel shareholders will hold the balance 68.6% in the merged entity.

This transaction will be a cash basis transaction at the request of Vodafone, which is currently in need of liquidity. The valuation of its 11.15% stake in Indus will be valued at 60 days VWAP price and will get an approximate valuation of Rs.4000 crore.

Once the company is merged, the effective holding structure will have Airtel holding 36.7%, Vodafone UK holding 28.2% and PEP holding 3.2% stakes. The remaining 31.6% will be held by the public shareholders of the company.

The scheme is subject to the approval of the NCLT and hence it will become effective only on the date on which the certified copy of the NCLT order is filed with the ROC and the same is communicated to the stock exchanges.

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