According to Vodafone Group, its lenders have approved the merger of Indus Towers with Bharti Infratel and the parties will now move the National Company Law Tribunal (NCLT) to make the transaction effective.

These lenders had contributed in funding for Vodafone Idea Limited’s (VIL) rights issue.

However, the agreement to proceed on the deal has been given on the condition of a consent for a security package for the merged entity from Vodafone’s existing lenders. The consent was sought on the €1.3 billion loan used to fund Vodafone’s contribution to the Indian arm VIL’s rights issue in 2019.

With the merger, Vodafone’s stake in Indus Towers will reduce from 42 per cent to 28.2 per cent. Bharti Infratel, which also held a 42 per cent stake, will now own 68.6 per cent.