New Delhi: Telecom infrastructure firm Bharti Infratel said it has extended deadline for merger of mobile tower company Indus Towers by two months to December 24 while considering regulatory uncertainty looming over the deal.
The delay in deal will also result in lower payment to Vodafone Idea for its around 11.15% stake, according to a regulatory filing by Bharti Infratel to stock exchanges. It was expected that Vodafone Idea will get around Rs 5,500 crore from stake sale in Indus Towers.
"The Board of Directors, in its meeting held on October 24, 2019, has accepted the CoD's recommendations to extend the long stop date by 60 days i.e. till December 24, 2019, on the basis of agreements on closing adjustments and other conditions precedent for closing," Bharti Infratel said.
It said based on the net debt as on September 30, 2019 and such agreed closing adjustments, it is expected that the dilution of equity stake held by the current shareholders of Bharti Infratel shall be lower on account of lesser number of shares to be issued against swap of Indus shares vis-a-vis illustrative shareholdings disclosed in the original transaction announcement.
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