Nov 13: Telecom players Vodafone India Ltd and Idea Cellular will sell off their standalone tower businesses to ATC Telecom Infrastructure Pvt Ltd. The total consideration for the deals is said to be close to $1.2 billion.
Both the telecom companies together have around 2000 towers with a combined tenancy ratio of 1.65x as of June 30. Reports quoting a joint statement issued by the two majors said that they and ATC Telecom Infrastructure Pvt Ltd have agreed to treat each other as long-term preferred partners, subject to existing arrangements.
They added that all the three will work together to push forward the expansion of high speed mobile networks in India.
Idea Cellular has in the meanwhile, told exchanges in a filing that the sale of its standalone business will be effective via the sale of the entire shareholding of Idea Cellular Infrastructure Services Ltd, involving 60,000 equity shares of Rs10 each to the buyer.
With the two telecom players set to merge to form a behemoth, India is anticipating the formation of the world’s second-largest and India’s largest telecom company. The merged entity would push Bharti Airtel Ltd down the ladder, and would boast close to 400 million customers . It is expected that the merger will happen next year.
If the sale of the tower businesses comes ahead of the proposed merger of the two companies, Vodafone India would pocket $592 million, while Idea will get $615 million, reports added.