Vodafone share price: Group offloads tower business in India

Ann Santiago
November 14, 2017

According to media reports, the company is planning to beef up its tower assets before selling a controlling stake in the business to a consortium led by private equity firm KKR & Co. "The parties will work together to further the expansion of high speed mobile networks in India".

The transactions will help ATC strengthen its foothold in India's telecom tower sector.

Canada's Brookfield, which called off talks to buy a stake in struggling Indian network operator Reliance Communications masts arm, has said it is open to acquiring the business under revised terms, while it looks at other potential opportunities in the India.

Idea will get Rs 4,000 crore for its tower business while Vodafone will get Rs 3,850 crore if the tower deal concludes before the merger of their mobile-phone businesses is completed, the companies said in a statement on Monday. Upon completion of the sale of tower businesses, Vodafone India will receive $592 million and Idea will receive $615 million. Jio's pricing strategy has hurt rivals' profits as they try to match low tariffs and also pushed some carriers to consolidate operations.

The company shares ended the session down by 3.61 per cent at Rs 93.55 on the BSE.

Idea and Vodafone India have a total of about 20,000 towers, with 1.65 tenants each on average, as of 30 June 2017.

"After Vodafone India and Idea have completed their merger, ~6,300 colocated tenancies of the two operators on the combined standalone tower businesses will collapse into single tenancies over a period of two years without the payment of exit penalties", the companies said. Mint had reported that Idea was also in talks to sell its entire stake in Indus to another buyer with the consent of Bharti Airtel. 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.

Other reports by

Discuss This Article