Vodafone Idea to merge Aditya Birla Telecom
Vodafone Idea Limited will merge Aditya Birla Telecom, which holds 11.15% stake in telecom infrastructure firm Indus Towers, with it
New Delhi: Telecom operator Vodafone Idea Limited will merge Aditya Birla Telecom Ltd, which holds 11.15% stake in telecom infrastructure firm Indus Towers, with it.
“The Board of Directors of Vodafone Idea Limited (VIL) ... has considered and approved a scheme of amalgamation of Aditya Birla Telecom Limited (ABTL), a wholly-owned subsidiary of the company, with the company,” Vodafone Idea said in a regulatory filing.
With this amalgamation, Vodafone Idea will directly have shareholding in Indus Towers and take call on monetisation of the stake held by ABTL following simplification in the corporate structure.
The scheme is subject to approval of the National Company Law Tribunal, Ahmedabad.
Indus Towers, on the other hand, is in process of merging with Bharti Airtel’s tower subsidiary Bharti Infratel and the deal has given Aditya Birla group option to sell its full shareholding in Indus Towers for cash.
VIL said that the amalgamation will give it efficient and economical management and control over running of businesses of the subsidiaries, eliminate duplication in administrative cost and strengthen its financial position and ability to raise resources against the assets owned by ABTL such as investments in mutual funds, Indus Towers stake “including monetisation of such assets”.
The networth of ABTL as on 31 March 2018, stood at ₹6,188.91 crore and that of VIL was ₹25,669.5 crore. There will be no change in shareholding pattern of VIL after completion of the amalgamation, according to the filing.
Vodafone and Idea Cellular had kept stake in Indus Towers out of their merger agreement.
Airtel through Bharti Infratel and British telecom firm Vodafone hold around 42% stake each in Indus Towers and ABTL holds 11.15%. Vodafone had earlier said it would look at monetising its stake in Indus Towers if it requires to make additional investment in India in case Aditya Birla group decides to put in additional fund in Vodafone Idea Limited.
Editor's Picks »
- Meet your friendly neighbourhood robot
- How proposed changes in H1-B visa rules may impact Indian IT companies, techies
- Burushaski, the language that survived
- Latest FD interest rates: SBI vs ICICI vs HDFC Bank vs Bank of Baroda vs PNB vs Axis Bank
- How new TRAI rules will change your Airtel DTH, Tata Sky, Dish TV plans in 2019. List of all charges
- What to expect from Q3 results of IndiGo, SpiceJet, Jet Airways
- Forget privatisation, govt has hugged its banks tighter
- Flat profit, rising debt are growing worries for Reliance
- Q3 results: HUL growth off a high base shows it’s on a roll
- DCB Bank Q3 results: Small loans give big pain as farm, mortgages lift delinquencies