In the recent meeting held on August 31, 2020, the board of directors has decided to proceed with the scheme of arrangement between Indus Towers and Bharti Infratel and to comply with other procedural requirements for completion of the merger, including approaching the National Company Law Tribunal (NCLT) to make the scheme effective subject to certain procedural condition precedents.
Moreover, Vodafone Idea Limited (VIL) has decided to sell its 11.15 per cent stake in Indus Towers for around Rs 40 billion.
Bharti Infratel added that to secure the payment obligation of VIL under the master service agreements (MSA), VIL and UK’s Vodafone Group Plc have entered into certain security arrangements with the company for the benefit of the merged company. These security arrangements remain subject to all applicable regulatory approvals and any approval of Vodafone Plc’s lenders. The security arrangement will provide the merged tower company a payment cover of over one year for the operational payments due from VIL.
Meanwhile, Bharti Infratel added that the merger scheme shall become effective on the date on which certified copy of the order of NCLT is filed with the Registrar of Companies.