Tower infrastructure provider, Bharti Infratel informed the exchange that its board has decided to proceed with the Scheme of Arrangements for a merger with Indus Towers. After the consensus have been reached, the company will have to get final approval of NCLT as well.
After this decision is implemented Vodafone, Airtel, and PEP may hold 28.2 per cent, 36.7 per cent, and 3.2 per cent respectively. It is estimated that after the share swap, Indus may hold 31.4 per cent and Infratel shareholders may hold 68.6 per cent. However, the shareholding is subject to change, said the company.
Bharti Infratel in a statement, said, "After deliberations, the Board has decided to authorize the Chairman to proceed with the Scheme and to comply with other procedural requirements for completion of the merger including approaching NCLT to make the Scheme effective subject to certain procedural condition precedents.”
Meanwhile, Vodafone Idea opted for the cash consideration coming to around Rs 4,000 crore for its 11.15 per cent. This decision came out hours before the Supreme Court announced its verdict in the AGR case.
"The above is basis cash consideration chosen by Vodafone Idea Limited (VIL) for its 11.15% shareholding in Indus which will be based on 60 days VWAP as at Closing date (and agreed closing adjustments). Based on today’s calculation the cash consideration comes to approximately INR 4,000 crore," said the company.
VIL and Vodafone Group Plc. (V Plc.) have entered into certain security arrangements to secure the payment obligations. “This includes a combination of a security deposit by VIL, security via pledge of a certain number of shares of the Merged Company out of those issued to V Plc. (as part of the Scheme) and a Corporate Guarantee by V Plc. which can get triggered in certain situations and events. These security arrangements remain subject to all applicable regulatory approvals and any approval of V Plc’s lenders. The security arrangement will provide the Merged Company a payment cover of over one year for the operational payments due from VIL.”