Update on Bharti Infratel and Indus Towers Merger

Vodafone Idea Limited ("VIL"), Vodafone Group Plc ("Vodafone"), Bharti Airtel Limited ("Bharti Airtel"), Indus Towers Limited ("Indus") and Bharti Infratel Limited ("Infratel") (collectively referred as "Parties" and individually as "Party") have agreed to proceed with completion of the merger of Indus and Infratel.

VIL has undertaken to sell its 11.15% stake in Indus for cash. The cash consideration payable by Infratel to VIL will be based on a formula linked to Infratel's VWAP for the 60 trading day period closer to the merger. The Parties have also agreed to use the FY20 EBITDA and net debt as on the closing date for Indus and Infratel valuation, with certain agreed pre-closing adjustments. Based on Infratel's VWAP during the last 60 trading days as on August 31, 2020, the value of VIL's 11.15% stake equatesto a cash consideration of approximately Rs. 40.4 billion (~US$ 551 million). The final determination will take place shortly before closing of the merger.

VIL has agreed to make a prepayment of Rs. 24 billion to the merged tower entity from the cash consideration to be received from Infratel at the time of closing. The prepayment amount will be adjusted to the extent of 50% of all undisputed and due amounts payable by VIL to the merged tower entity post-closing and VIL will be required to pay only the balance 50% of undisputed dues. The prepayment amount will accrue interest at 6% p.a. This will continue until the entire prepayment amount with accrued interest is fully adjusted.

The Parties have agreed to take appropriate steps to progress the approvals for the merger, the completion of the merger shall be subject to receipt of all such approvals. The merger scheme shall become effective on the date on which certified copy of the order of Hon'ble NCLT is filed with Registrar of Companies.

Shares of BHARTI AIRTEL LTD. was last trading in BSE at Rs.511 as compared to the previous close of Rs. 523.55. The total number of shares traded during the day was 1314655 in over 24949 trades.

The stock hit an intraday high of Rs. 522.05 and intraday low of 508.75. The net turnover during the day was Rs. 676806750.

Shares of Vodafone Idea Ltd was last trading in BSE at Rs.10.19 as compared to the previous close of Rs. 10.1. The total number of shares traded during the day was 148869422 in over 104842 trades.

The stock hit an intraday high of Rs. 11.07 and intraday low of 9.6. The net turnover during the day was Rs. 1557970012.

Source : Equity Bulls

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