Vodafone draws a line under Indian experiment with $1.2bn towers sale

14 November, 2017, 00:42 | Author: Regina Lloyd
  • Vodafone draws a line under Indian experiment with $1.2bn towers sale

It merged its loss-making Indian mobile business with Idea, India's third-largest wireless operator, at the start of the year.

The transactions will help ATC strengthen its foothold in India's telecom tower sector. Idea Cellular Infrastructure Services Ltd, a unit of Idea Cellular, had around 9,900 towers with a tenancy ratio of 1.80 as of 30 September 2017. Idea's share of the sale to American Tower will be 40 billion rupees, while Vodafone India will get 38.5 billion rupees.

Idea Cellular today posted a loss of Rs 1,106.80 crore for the second quarter of the current fiscal, saying that the business was hit by pricing pressure and GST introduction in a "challenging" operating environment.

Idea will use proceeds from the tower sale to expand 4G coverage as well, Himanshu Kapania, the carrier's managing director, said by phone Monday.

Shares of Idea Cellular today fell almost 4 per cent after the company posted a loss of Rs 1,106.80 crore for the second quarter this fiscal.




"This transaction follows the Vodafone India/Idea merger announcement of March 20, 2017 whereby the parties announced their intention to sell their individual standalone tower businesses to strengthen the balance sheet of the combined business", it said. The deal is expected to close in 2018.

Mint had reported in February that Idea Cellular was in talks to sell its tower assets in two separate deals thereby marking its complete exit from the tower business in which ATC had emerged the frontrunner to buy around 11,000 standalone towers from Idea.

Media reports have said KKR & Co LP, which along with Canada Pension Plan Investment Board, already owns over a 10th of Bharti Infratel, the only publicly-traded mast operator in India, is leading a group of investors to take control of the company.

The deal is subject to regulatory sign-off and is expected to complete in the first half of 2018.

Recommended:



Popular

ABC President: Conor McGregor Assaulted Referee, Jeopardized Fighters' Health
It's likely that McGregor will face some sort of punishment from the athletic commission, but it is unclear what that will be. Conor McGregor who was a spectator at the time, disrupted the event by scaling the cage prior to the conclusion of the bout".

Jubilation in Morocco after National Team Qualifies to World CUP
Tunisia and Morocco have completed the roster of teams that would represent Africa at the Russian Federation 2018 World Cup. Tunisia finished on 14 points in Group A of the African preliminaries , one ahead of the Democratic Republic of Congo.

At least 16 dead after boat capsizes in Andhra Pradesh
The boat overturned while it was returning from the Bhavani Island to the Pavithra Sangamam, where the Godavari meets the Krishna. Thirty-eight people were on board when the ferry capsized while turning toward the river bank, officials said.

Advocacy group: Fidget spinners sold at Target contain high amounts of lead
A consumer advocacy group found that some models sold at Target contain high levels of lead. PIRG released their findings to make parents and consumers aware of these lead-laden toys.

Apple's Newest iPhone Update Finally Fixes That Annoying Autocorrect Bug
But other than the company warning about potential screen burn-in, Apple hasn't had the same experience with the iPhone X . "After several seconds the screen will become fully responsive again", Apple said in a statement.

EA Acquires Respawn Entertainment For (Up To) $455 Million
It says a lot about where EA are at right now as a publisher and in the eyes of gamers that this news was met with alarm. Respawn is a bit of a titan itself in the game development arena, and here is hoping it does not fall.

Disney Streaming Service to be Substantially Cheaper than Netflix
The launch of this new service is still two years away, so we're obviously still waiting for more information . All are set for the streaming service, which is due to debut online in 2019.

Netflix Android Beta Program Free Download Once Again
The receiver will then pop up a window asking the permission to connect and once you are there, you can now share files offline. You can install the app through the available file on any of your devices running Android 5.0 and above.

Melania Trump wears Gucci cheongsam for China state dinner
We'd suggest avoiding these areas until Trump's visit ends Friday (November 10). "It's exciting, as well", she added. Later, she greeted a group of schoolchildren and handed over stuffed toy eagles to them.

Facebook Urges Consumers To Send Nude Photos To Prevent Their Upload
Then, the users will be asked to send that image to themselves on Facebook Messenger. But that still requires human workers and human eyes on the sensitive images.