Bharti Infratel: Merger benefit
Shares of Bharti Infratel surged 11.5% to Rs 207.35 on NSE after the telecom infrastructure provider said its proposed merger with Indus Towers to create the biggest tower company outside China has been completed.
Indus Towers is a joint venture between Bharti Infratel, UK-based Vodafone Group Plc and Vodafone Idea. Bharti Infratel and Vodafone Group hold 42% stake each in Indus. Vodafone Idea holds 11.15% stake and the remaining 4.85% is with private equity firm, Providence. Airtel has a majority stake in Bharti Infratel.
The Board of Bharti Infratel has allotted over 75.78 crore equity shares of Rs 10 each to the Vodafone group and over 8.75 crore equity shares of Rs 10 each to PS Asia Holding Investments (Mauritius) Limited (Providence) aggregating to 28.12% and 3.25%, respectively in the post-issue share capital of the company.
Last month, at the time of announcing fiscal second quarter earnings performance Bharti Infratel informed about receiving the National Company Law Tribunal (NCLT) approval to the deal which has been in process for a long time.
During the July-September quarter, Infratel added 1,482 towers and 2,116 co-locations, registering a sequential growth of 2.4% in sharing revenue per tower per month. As of September 30, 2020, the company had consolidated portfolio of 97,283 telecom towers, which includes over 43,000 of its own towers and the balance from its 42% equity interest in Indus Towers, makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles.
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