Bharti Infratel on Tuesday said that its board, in a meeting held on Monday, decided to proceed with the Scheme of Arrangements for a merger with Indus Towers.

As per the statement by Bharti Infratel, the likely shareholding structure in the merged company could be:

  • Vodafone may hold 28.2 percent, Airtel 36.7 percent, and PEP 3.2 percent
  • Total for Indus share swap: 31.4 percent and Infratel shareholders: 68.6 percent

The shareholding is subject to change, based on the closing adjustments, said the company.

Vodafone Idea has decided to cash out by selling its 11.15 percent stake in Indus for an approximated $546.05 Mn. The development comes just hours before the Supreme Court pronounces its much-awaited verdict in the AGR case.

“The effective date will be communicated to the stock exchanges for further public dissemination as and when the scheme becomes effective. While the parties have agreed to proceed to take appropriate steps to progress the approvals for the merger, the completion of the transaction shall be subject to receipt of all such approvals,” the filing added.

To secure the payment obligation of VIL under the master service agreement, VIL and Vodafone Group have entered into certain security arrangements with the company, for the benefit of the merged entity.

Bharti Airtel will hold 36.7 per cent stake in the merged entity, Vodafone UK (28.2 per cent), Providence Equity Partners (3.2 per cent) with public holding (31.6 per cent), according to a source. 

The merger scheme shall become effective on the date on which certified copy of the order of NCLT is filed with Registrar of Companies.

 

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