wordpress blog stats
Connect with us

Hi, what are you looking for?

Vodafone tower business sold to ATC for Rs 3800 crore; Idea will follow

Vodafone has completed the sale of its tower business in India to ATC Telecom Infrastructure (ATC) for Rs 3800 crore. The decision of this sale was taken when Vodafone and Idea announced their merger in March 2017. The said sale was announced in November 2017. According to ET, Vodafone held 10,200 towers in India.

Idea will also sell its tower business to ATC by mid-2018, which is expected to be worth Rs 4,000 crore.

The two deals are likely to generate nearly Rs 2,100 crore in property revenue and close to Rs 800 crore in gross margin during their first full year in ATC’s portfolio, the company had earlier announced.

Vodafone-Idea merger

The merger is likely to be completed by the first half of 2018. The leadership team of the newly-formed entity was also announced recently. Kumar Mangalam Birla will be the non-executive chairman of the board of the merged company. He is the chairman of Aditya Birla Group, Idea’s parent. Balesh Sharma, who is currently the chief operating officer of Vodafone India, will be the CEO of the new entity. Sharma will be responsible for the combined entity’s strategy, execution and integration. Both the companies have 3 director appointment rights each.

The proposed deal has been approved by statutory body Competition Commission of India (CCI) in July 2017.  The deal received approvals from the Securities and Exchange Board of India in August 2017. Earlier this year, in January, it was also approved by the National Company Law Tribunal (NCLT).

Post-merger Vodafone will receive a 50% stake in Vodafone-Idea (approximately 3,630 million shares. Once the merger is complete it will transfer a 4.9% stake in the combined company to Aditya Birla Group for $579 million in cash. Vodafone will hold 45.1% ownership of the merged entity, while Idea’s parent Aditya Birla Group will have 26.0% share. Idea’s minority shareholders will hold another 28.9% ownership in the new company. The balance stake will be held by the public.

You May Also Like


Airtel on Wednesday announced its own ad platform, Airtel Ads, in a virtual press conference. Terming its new product “powerful brand engagement solution”, the...


Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), is set to acquire a 2% stake in PharmEasy’s parent company API Holdings,...


Airtel has partnered with the telecom gear maker Qualcomm for its 5G network rollout, the companies announced in a press release on Tuesday. “Through...


Vodafone Idea (Vi) has joined the Transactional Video on Demand (TVOD) bandwagon, in partnership with the music and film streaming company Hungama, which has...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ