Bharti Infratel Extends Deadline for Merger with Indus Towers to April 24

On 24 February, the board of Bharti Infratel decided to extend the deadline for the closure of the merger with Indus Towers by another two months—pushing the deadline to 24 April. The board added that the enforcement of the deal with depend on the impact of the current AGR crisis.

Infratel in a statement to the exchanges on Monday said, “Since the other actions/conditions precedent to be fulfilled for the Scheme to become effective cannot be completed by the extended Long Stop Date i.e. February 24, 2020, the Board of Directors have further extended the long stop date till April 24, 2020, subject to agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the scheme.”

“The final decision to implement the scheme will be taken by the Board keeping in mind the best interest of the Company and its stakeholders including the assessment of the current crisis facing the telecom industry and the extent of its impact on the Company's major customers,” the company added.

Shares of Infratel, which is India’s only listed tower company, decreased 6.1 per cent at Rs. 212.55 crore on the BSE ion mid-afternoon trade.

Now, the deal has to be cleared by the National Company Law Tribunal- Chandigarh, following which, it has to be taken on record by the Registrar of Companies-- a process that will easily take at least two to three months.

Indus Towers is co-owned by Bharti Infratel, UK’s Vodafone Group Plc and VIL. The first two hold 42 per cent each, while VIL owns 11.15 per cent. The remaining 4.85 per cent is with the private equity firm Providence.

Bharti Airtel currently has a majority stake in Bharti Infratel. After VIL’s exit, Bharti Airtel and Vodafone Plc are expected to own 37.2 per cent and 29.4 per cent respectively.