Bharti Airtel on Friday said the merger of Indus Towers Limited and its telecom tower arm Bharti Infratel Limited has been completed.
Post the completion of the transaction, Vodafone Idea Ltd (VIL) has received cash consideration of Rs. 3,760.1 crore for its 11.15 per cent shareholding in Indus.
About Indus Tower
Indus Towers was a joint venture between Bharti Infratel, UK-based Vodafone Group Plc and Vodafone Idea.
Bharti Infratel and Vodafone Group held 42 per cent stake each in Indus.
Vodafone Idea held 11.15 per cent stake and the remaining 4.85 per cent was with private equity firm, Providence.
The combined entity has become the largest tower company in the world outside China, with a pan-India tower reach comprising 163,000 towers across 22 telecom service areas.
New name – Indus Towers Limited
The merged entity will be renamed ‘Indus Towers Limited’.
The change of name will be subject to the company complying with all the statutory filing requirements under the Companies Act, 2013 for placing the change of name in the Register of Companies.
The same will be intimated to the stock exchanges upon completion of the process.
Share holding pattern
Aggregate shareholding of Bharti Infratel in combined entity will change from 53.51 per cent to 36.73 per cent; Vodafone Group’s shareholding will change to 28.12 per cent
The Board has allotted 757,821,804 equity shares of ₹10 each to the Vodafone group and 87,506,900 equity shares of ₹10 each to PS Asia Holding Investments (Mauritius) Limited (Providence)
Which was aggregating to 28.12% and 3.25% respectively in the post-issue share capital of the company.
Appointment of CEO
The Board has proposed appointment of Bimal Dayal as Managing Director and CEO of the Company to be made effective from the date of approval of the shareholders of the company.
Also based on the recommendation of the HR, Nomination and Remuneration Committee, has approved the appointment of some additional directors, including Gopal Vittal, Harjeet Kohli, Ravinder Takkar and Balesh Sharma as non-executive non-independent directors.
Stock Market Impact
The stock closed 17.73 per cent higher at ₹218.50 on the BSE after touching an intra-day high of ₹222.70.
VIL shares gained 8.31 per cent to close at ₹10.04 on the BSE.
It had touched an intra-day high of ₹10.13.
On the NSE, the scrip rose 7.57 per cent to close at ₹9.95 apiece after touching an intra-day high of ₹10.15.
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