The sale is a part of a broader money deal introduced in February, underneath which Indus Towers agreed to accumulate 12,700 towers from Bharti Airtel and one other 3,400 from Hexacom
In sum – what to know:
Shareholders again Indus sale – 88.28% of Bharti Hexacom shareholders accredited promoting 3,400 towers to Indus Towers, clearing a deal beforehand stalled by valuation disputes.
A part of bigger Airtel deal – The transaction is tied to a broader INR33.087 billion settlement the place Indus will purchase 16,100 towers from Bharti Airtel and Hexacom mixed.
Valuation questions unresolved – TCIL initially blocked the sale over pricing issues, and it’s nonetheless unclear if the unique INR11.34 billion valuation of Hexacom’s belongings was adjusted.
Bharti Hexacom, a subsidiary of Indian telecom group Bharti Airtel, has secured shareholder approval to promote 3,400 telecom towers to Indus Towers, after preliminary resistance from minority shareholder Telecommunications Consultants India (TCIL), in accordance with Indian press stories.
The sale is a part of a broader INR33.087 billion ($378 million) money deal introduced in February, underneath which Indus Towers agreed to accumulate 12,700 towers from Bharti Airtel and one other 3,400 from Hexacom. Hexacom operates client cellular, fixed-line, and broadband providers in Rajasthan and India’s Northeastern states.
In April, stories indicated TCIL — which owns a 15% stake in Hexacom — blocked the sale resulting from a dispute over tower valuation. The state-owned firm had known as for a brand new evaluation earlier than approving the transaction.
On the time of signing, Hexacom’s 3,400 towers have been valued at INR11.34 billion. Nevertheless, it stays unclear whether or not this valuation was revised earlier than shareholders voted, in accordance with the stories.
In keeping with a regulatory submitting cited by Press Belief of India, 88.28% of Hexacom shareholders accredited the deal through the firm’s thirtieth annual common assembly this week.
As the biggest tower operator in India, in manages over 234,000 towers nationwide, together with greater than 386,000 colocation websites.
Based in 2007 by Bharti Infratel, Vodafone Essar and Thought Mobile, Indus Towers emerged from a partnership between these entities, with the latter two merging later. Final month, U.Okay-based Vodafone Group has finalized the sale of its remaining 3% stake in the Indian firm.
The corporate reported that $105 million from the sale proceeds has been used to completely repay excellent money owed to present lenders. The remaining $225 million was allotted to extend Vodafone’s possession in Indian telecom operator Vodafone Thought. With this funding, Vodafone’s stake in Vodafone Thought has elevated from 22.56% to 24.39
