Bharti Infratel, incorporated on November 30, 2006, is India’s leading provider of tower and related infrastructure and it deploys, owns and manages telecom towers and communication structures for various mobile operators. The company has a consolidated portfolio of over 91,000 telecom towers which includes over 39,000 of its own towers and the balance from its 42% equity stake in Indus Towers. The three leading wireless telecommunications service providers in India by revenue — Bharti Airtel Vodafone and Idea Cellular — are the largest customers of Bharti Infratel. The company has market share of 9.8% and in terms of company Co locations 11.6%.

Indus Towers is an independently managed company offering passive infrastructure services to all telecom operators and other wireless services providers such as broadband service providers. Incorporated in November 2007, Indus Towers Limited has been promoted under a joint venture between entities of Bharti Infratel Limited Vodafone India and Aditya Birla Telecom (to render passive infrastructure services to telecom service providers. The company has market share of 31% and in terms of Co locations 37.1%.

Transaction Structure

Indus-Towers-Bharti-Infratel-Merger-Exit-Idea-1

As per the implementation agreement, Idea and Providence shareholders of Indus Towers have been given an option to exit. Idea have full exit option and whereas Providence for partial stake of 3.35%. Bharti Infratel will fund the same through debt or either through internal accrual. Fund receivable by Idea and Providence is Rs 7,202.17 crore ad Rs 2,163.93 crore. The transaction is expected to be complete before the end of the financial year ending March 31, 2019.

Shareholding Pattern

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