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13
November 2017
 |
Vodafone India and Idea Cellular (The Total Investment & Insurance
Solutions)
Vodafone
India and Idea Cellular on Monday separately agreed to sell their respective
standalone tower businesses in India to ATC Telecom Infrastructure Private
Limited (formerly Viom) for an aggregate enterprise value of Rs 7,850 crore
($1.2 billion), a company statement said.
In
the event that the completion of the sale of the standalone tower businesses
precedes the completion of the proposed merger of Vodafone India and Idea,
Vodafone India will receive Rs 3,850 crore ($592 million) and Idea will receive
Rs 4,000 crore ($615 million). The Total Investment
& Insurance Solutions
The
standalone tower businesses of Vodafone India and Idea are pan-Indian passive
telecommunication infrastructure businesses, comprising a combined portfolio of
approximately 20,000 towers with a combined tenancy ratio of 1.65 times as on
June 30, 2017. The Total Investment & Insurance
Solutions
Idea
will sell its entire stake in Idea Cellular Infrastructure Services Limited and
Vodafone India will sell a business undertaking to ATC TIPL.
"Both
Vodafone India and Idea as customers, and ATC TIPL as a mobile network
infrastructure provider, have agreed to treat each other as long-term preferred
partners, subject to existing arrangements. The parties will work together to
further the expansion of high speed mobile networks in India," the
statement said. The Total Investment & Insurance
Solutions
The
statement said that after Vodafone India and Idea have completed their merger,
around 6,300 co-located tenancies of the two operators on the combined
standalone tower businesses will coalesce into single tenancies over a period
of two years without the payment of exit penalties.
"This
transaction follows the Vodafone India/Idea merger announcement of March 20,
2017 whereby the parties announced their intention to sell their individual standalone
tower businesses to strengthen the balance sheet of the combined
business," it said. The Total Investment
& Insurance Solutions
Completion
of the transaction is subject to customary closing conditions and receipt of
necessary regulatory approvals, and is expected to take place during the first
half of calendar year 2018. The Total Investment
& Insurance Solutions
Idea
Cellular has posted consolidated net loss of Rs 1,106.80 crore for the second
quarter (July-September) of 2017-18 fiscal.
Consolidated
revenue for the quarter stood at Rs 7,465.50 crore, compared to Rs 9,300.30 crore
posted during the corresponding period in 2016-17.The Total Investment & Insurance Solutions
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