The proposed merger of Bharti Infratel and Indus Towers is likely to be completed after all sides agreed to change the contours of the deal.
The principal shareholders, Bharti Group and Vodafone, have opted for a share-swap arrangement instead of the original plan, under which Bharti Infratel would acquire Vodafone Idea’s entire 11.15% stake in Indus Towers for about Rs 4,500 crore in cash, two people familiar with the development told ET.
Under the new plan, which was one of the options in the scheme of arrangement, Vodafone Idea and Providence Equity Partners, an investor in Indus Towers, will be issued fresh shares in the merged entity.
The shareholders will approach the National Company Law Tribunal in Chandigarh to get final approval of the merger, first announced over two years ago.
Bharti Infratel and Indus Towers have initiated the process to create a common team to ensure seamless integration. Indus Towers, which will absorb Bharti Infratel, has promoted chief operating officer Bimal Dayal as chief executive officer and he is expected to head the merged entity.
DS Rawat, the current MD and CEO of Bharti Infratel and an old Bharti Group hand, is likely to move back to Bharti Airtel, with his current term due to end in September.
“We have no further comments to offer beyond the statement/disclosure made to the stock exchanges. As and when there is any development, we will inform the exchanges and other stakeholders,” a Bharti group spokesperson said.
A Vodafone Idea spokesperson didn’t respond to queries.
According to the original merger announcement, Vodafone Idea (11.15% in Indus Towers) and Providence Equity Partners (4.85%) had two options. In the first option, Vodafone Idea could swap its entire stake in Indus Towers for a 7.1% stake in the merged entity and Providence could exchange its holdings for 3.1% in the merged entity.
Source: Economic Times