Vodafone India completes tower sale to ATC
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Vodafone India has taken another step towards the closure of its planned merger with Idea Cellular, after the company completed Tuesday the sale of its standalone tower business to ATC Telecom Infrastructure Private Limited (ATC) for 38.5 billion rupees ($592.9 million).
The company announced in November 2017 that it plans to sell its tower business along with Idea Cellular’s to ATC for a combined $1.2 billion, as part of its plan to merge with Idea Cellular to form the largest mobile player in India.
With the completion of the sale of Vodafone’s tower business, a similar announcement is expected from Idea Cellular in the coming months, Vodafone said in a company statement.
“In the Vodafone India / Idea merger announcement of 20 March 2017, both parties announced their intention to sell their individual standalone tower businesses to strengthen the combined financial position of the merged entity. The merger is expected to complete in the first half of the current calendar year,” Vodafone added.
“Completion of Idea’s sale of its standalone tower business to ATC is also expected in the first half of this calendar year.”
In addition, Vodafone and Idea Cellular have also announced a new executive team to lead the merged entity, which will come into effect after the Vodafone India / Idea merger has been completed.
Aditya Birla Group chairman Kumar Mangalam Birla will be the non-executive chairman of the merged Vodafone-Idea entity, while Vodafone India COO Balesh Sharma has been named CEO, Idea’s Akshaya Moondra CFO and his colleague Ambrish Jain COO, Vodafone said in a company statement released late March.
Questions & Answers
Q.What is the primary reason for Vodafone India selling its tower business?
What is the primary reason for Vodafone India selling its tower business?
Vodafone India is selling its tower business to strengthen the combined financial position of the merged entity with Idea Cellular. This sale is part of their plan to merge and form the largest mobile player in India.
Q.Has Idea Cellular also completed the sale of its tower business?
Has Idea Cellular also completed the sale of its tower business?
No, Idea Cellular has not yet completed the sale of its tower business to ATC. A similar announcement from Idea Cellular is expected in the coming months, likely within the first half of this calendar year.
Q.Who will lead the merged Vodafone-Idea entity?
Who will lead the merged Vodafone-Idea entity?
Kumar Mangalam Birla will be the non-executive chairman of the merged entity. Balesh Sharma will serve as CEO, Akshaya Moondra as CFO, and Ambrish Jain as COO. This team will take effect after the merger.
Q.When is the merger between Vodafone India and Idea Cellular expected to be completed?
When is the merger between Vodafone India and Idea Cellular expected to be completed?
The merger between Vodafone India and Idea Cellular is expected to be completed in the first half of the current calendar year. The intention to merge was first announced on 20 March 2017.