Published: Tue, November 14, 2017
Markets | By Rosalie Gross

ATC to buy tower businesses of Voda, Idea for Rs 7850 crore

ATC to buy tower businesses of Voda, Idea for Rs 7850 crore

In terms of equity volume, 29.40 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.

Jim Taiclet, American Tower's Chief Executive Officer stated, "We expect the addition of these two high quality portfolios to be highly complementary to our existing assets and to contribute to long-term leasing growth as India's leading mobile operators accelerate their 4G network deployments". Ltd for about $1.2 billion. The companies noted that in the event that the completion of today's sale precedes the completion of the proposed merger, both expected next year, Vodafone India will receive INR38.5 billion ($592 million).

"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. Reliance Communications, struggling under a $7 billion in debt, has also revived efforts to sell a stake in its tower unit Reliance Infratel, after a prospective deal with Brookfield Asset Management fell apart last month. Its offers of free voice calls and data plans, which continued for months, eroded the revenue and profits of competitors such as Idea and Bharti. Together, Idea Cellular and Vodafone India have a debt of Rs1.08 trillion. The deal is expected to close in 2018.

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The standalone tower businesses of Vodafone and Idea comprise a combined portfolio of almost 20,000 towers. The sale of the tower business is likely to be completed in the first half of 2018.

Earlier this year, Vodafone India and Idea had agreed to merge their operations to create the country's largest telecom operator worth of more than United States dollars 23 billion with a 35 percent market share.

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