The Department of Telecom on Friday approved the merger of the country's largest mobile tower company Indus Towers with Bharti Infratel Ltd., according to official sources.
The combination of Bharti Infratel and Indus Towers will create a pan-India tower company with over 1,63,000 towers, operating across all 22 telecom service areas. The combined entity will be the largest tower company in the world outside China.
“DoT has approved merger of Indus Towers with Bharti Infratel,” an official source told PTI.
Bharti Infratel and Vodafone hold 42 percent stake each in Indus. Vodafone Idea holds 11.15 percent stake in the mobile tower firm.
As per the plans, the combined company, which would fully own the respective businesses of Bharti Infratel and Indus Towers, would change its name to Indus Towers Ltd. and will continue to be listed on Indian stock exchanges.
The timely completion of the tower deal is critical for the companies, as it would allow Bharti and Vodafone Idea in offloading stake and raising funds.
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