Vodafone Agrees to Proceed With Indian Tower Merger
01 September 2020 - 5:46PM
Dow Jones News
By Adria Calatayud
Vodafone Group PLC said Tuesday that it has agreed with Bharti
Airtel Ltd. and Vodafone Idea Ltd. to proceed with completion of a
merger between Indian telecom tower companies Indus Towers Ltd. and
Bharti Infratel Ltd.
The U.K. telecommunications group said it will receive 760
million new shares in the combined company in exchange for its 42%
stake in Indus Towers. This would be equivalent to 28.2% of the
combined company, Vodafone said.
Bharti Airtel's shareholding in Bharti Infratel would be diluted
to 36.7% from 53.5%. Bharti Airtel will jointly control the
enlarged group with Vodafone, the U.K. company said.
Vodafone said its stake in the combined company would have a
value of around 151 billion Indian rupee ($2.05 billion) at the
current Bharti Infratel market valuation.
Providence Equity Partners, which owns a 4.85% shareholding in
Indus Towers, has also elected to receive shares in the combined
company, while Vodafone Idea has elected to sell its 11.15%
interest for cash, the U.K. company said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
September 01, 2020 03:31 ET (07:31 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Vodafone (NASDAQ:VOD)
Historical Stock Chart
From Apr 2024 to May 2024
Vodafone (NASDAQ:VOD)
Historical Stock Chart
From May 2023 to May 2024