Mumbai: Telecom operator Idea Cellular Tuesday said it has received the approval from the Gujarat high court for demerging its passive infrastructure like towers and power back-up plants to its wholly-owned subsidiary Idea Cellular Towers Infrastructure.
“The high court of Gujarat at Ahmedabad has sanctioned the scheme of arrangement between Idea Cellular and Idea Cellular Towers Infrastructure,” the company said in a filing to the Bombay Stock Exchange (BSE).
Under the scheme, the company would demerge its passive infrastructure to Idea Cellular Towers Infrastructure.
Further, the court has also given its approval for the company’s financial restructuring.
The high court has sanctioned the financial restructuring “seeking to adjust amount of ‘non compete fee´ amounting to Rs543.97 crore paid to the erstwhile promoters of Spice Communications,” Idea Cellular said.
Last year, Idea Cellular had announced the acquisition of rival mobile operator Spice Communications in a deal entailing purchase of a 40.8% stake for over Rs2,700 crore in shares and cash.
At that time, Idea Cellular had said that it would pay Rs543.97 crore as a non-compete fee, or money paid to ward off competition from Spice Communications, for the acquisition.
Shares of Idea Cellular were trading at Rs81.85, up 0.80% in the afternoon trade on the BSE, whereas Spice Communications was trading at Rs71.05, up 17.15%.