(Reuters) - Bharti Airtel Ltd approved the merger of Indus Towers Ltd with its mobile masts operator unit Bharti Infratel Ltd, creating the largest tower company outside China by number of towers, the carrier said on Wednesday.
Shareholders of Indus Towers will get 1,565 shares of Bharti Infratel for every share held, valuing Indus Towers at an enterprise value of 715 billion rupees ($10.74 billion).
Vodafone Group Plc, Idea Group and Providence Equity Partners have agreed to merge their holdings in Indus Towers into Bharti Infratel, creating a combined company that will be owned by Bharti Airtel and Vodafone with equal rights, the companies said in a joint statement. https://reut.rs/2HqO3Cc
Pro forma for the transaction, the combined company's equity value will be 965 billion rupees ($14.50 billion), they said.
The deal is expected to close before March 31, 2019 and the combined company, which is to be named as Indus Towers Ltd, will be listed on Indian stock exchanges.
Bharti Airtel, which owns a 53.5 percent stake in Bharti Infratel, said it will consider a strategic stake sale in Indus Towers post merger.
The board of the combined company will have 11 members - three each from Bharti Airtel and Vodafone, one from KKR or Canada Pension Plan Investment Board and four independents (including the chairman), the companies said.
($1 = 66.5675 Indian rupees)
(Reporting by Vishal Sridhar in Bengaluru; Editing by Gopakumar Warrier)
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