Bharti Infratel has not received government approvals for its merger with Indus Towers, by the December 24 deadline, and has thus yet again extended the deadline for closing the deal to February 24, 2020.
The company added that each party will have the right to terminate the deal in the next two months.
“Completion of merger is contingent upon receipt of requisite regulatory approvals and fulfilment of other conditions precedent,” the company said in filing Wednesday after market hours. It added that “there can be no assurance that the merger can be completed within the extended time-frame”.
The proposed merger of Bharti Infratel with Indus Towers aims to create one of the world’s largest telecom tower companies with more than 163,000 towers.
Indus Towers is a three-way joint venture between Bharti Infratel, UK-based Vodafone Group and Vodafone Idea, with the first two holding 42% each. Vodafone Idea has 11.15% and the remaining 4.85% is with private equity firm, Providence. Bharti Airtel owns a majority stake (53.51%) in Bharti Infratel.
The Bharti Infratel and Indus Towers merger deal was signed on April 23 last year and was to have been completed by October 24 this year. This was extended to December 24 after the companies didn’t get government clearance by the initial deadline.
Bharti Infratel’s shares closed 0.6% higher at Rs 256 on BSE Wednesday.
Bharti Infratel has not received government approvals for its merger with Indus Towers, by the December 24 deadline, and has thus yet again extended the deadline for closing the deal to February 24, 2020.
The company added that each party will have the right to terminate the deal in the next two months.
“Completion of merger is contingent upon receipt of requisite regulatory approvals and fulfilment of other conditions precedent,” the company said in filing Wednesday after market hours. It added that “there can be no assurance that the merger can be completed within the extended time-frame”.
The proposed merger of Bharti Infratel with Indus Towers aims to create one of the world’s largest telecom tower companies with more than 163,000 towers.
Indus Towers is a three-way joint venture between Bharti Infratel, UK-based Vodafone Group and Vodafone Idea, with the first two holding 42% each. Vodafone Idea has 11.15% and the remaining 4.85% is with private equity firm, Providence. Bharti Airtel owns a majority stake (53.51%) in Bharti Infratel.
The Bharti Infratel and Indus Towers merger deal was signed on April 23 last year and was to have been completed by October 24 this year. This was extended to December 24 after the companies didn’t get government clearance by the initial deadline.
Bharti Infratel’s shares closed 0.6% higher at Rs 256 on BSE Wednesday.
Source: Economic Times