Bharti Infratel on Friday said the company and Indus Towers, which had extended their merger deadline to June 24, were well within their rights to terminate the contract if the need arises.
In a post-earnings conference call, Akhil Gupta, chairman, Bharti Infratel, said: “The original date for the merger with Indus Towers was October 2019, which got pushed back several times and the new date is June 24, 2020. Each party has the right to terminate the proposed merger.”
Capital markets services firm CLSA said the review of Infratel’s merger terms with Indus would also be a positive.
Bharti Infratel, in which Bharti Airtel has 53.5 per cent stake, owns and operates over 40,000 towers. It holds 42 per cent in Indus Towers, which is a tri-partite joint venture (JV) between Bharti Infratel, Vodafone, and Vodafone Idea in the ratio 42:42:11.
Bharti Infratel on Thursday posted 6.89 per cent year-on-year (YoY) rise in consolidated net profit at Rs 649.50 crore for the quarter ended March 31. It had reported a net profit of Rs 607.60 crore in the corresponding quarter last year. The company had reported Rs 608-crore profit in the same period a year ago. The telecom tower company recorded consolidated revenue of Rs 3,624 crore during the quarter.
It had registered revenue of Rs 3,600 crore in the corresponding quarter of 2018-19.
Source: Business-Standard