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.
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.