Idea Cellular announces merger of Bharti Infratel and Indus Tower

Bharti Airtel, Idea Cellular (along with its subsidiary ABTL, Idea Group) and Vodafone Group announce that they have agreed to merge Vodafone's, Idea Group's and Providence Equity Partners' (Providence) respective shareholdings in Indus Towers (Indus Towers) into Bharti Infratel, creating a combined company that will own 100% of Indus Towers (the Transaction).

Indus Towers is currently jointly owned by Bharti Infratel (42%), Vodafone (42%), Idea Group (11.15%) and Providence (4.85%).

The merger ratio (1,565 shares of Bharti Infratel for every 1 Indus Towers share, the Merger Ratio) is within the range recommended by the independent valuer. The transaction values Indus Towers at an enterprise value of INR715bn (US$10.8bn) or 9.3x EV/LTM EBITDA.

 

Bharti Airtel and Vodafone will jointly control the combined company, in accordance with the terms of a new shareholders' agreement.

The transaction is conditional on regulatory and other approvals, including from CCI, SEBI, NCLT, DoT (FDI approval), and is expected to close before the end of the financial year ending 31 March 2019.

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