Telecom service provider Vodafone Idea is all set to sell its 11.15% stake in Indus Tower with Vodafone Group, Vodafone Idea, and Bharti deciding to go ahead with the competition of the merger of Indus Towers and Bharti Infratel.
Vodafone Idea in a BSE filing stated that it has undertaken to sell its 11.15% stake in Indus for cash. The value of VIL’s 11.15% stake equates to a cash consideration of approx Rs 40.4 billion with the final determination taking place before closing of merger. The FY20 EBITDA and net debt as on the closing date for Indus and Infratel valuation will be used.
Vodafone Idea will prepay Rs 24 billion to the merged entity from cash consideration which will received from Infratel which will adjusted to the extent of 50% of all undisputed and due amounts payable by VIL to the merged entity.
The trio will be taking all steps to progress the approvals for the merger which will be subject to the receipt of all such approvals. The merger scheme will become effective once Hon’ble NCLT’s certified order copy is filed with the Registrar of Companies.