title-bar

Bharti Infratel settles with tenants for Rs 5,550 crore

By: |
New Delhi | Published: January 26, 2019 12:18:20 AM

Of the settlement amount, which includes shares of Indus, the merged entity will get about Rs 1,820 crore in cash, which will be booked over the next 12 quarters.

Bharti Infratel, Vodafone Idea, Bharti Airtel shareholders, ncltBharti Infratel chairman Akhil Gupta said the company is in the process of getting approval from creditors for the merger of Bharti Infratel and Indus Towers.

Telecom tower firm Bharti Infratel, which is being merged with Indus Towers, has reached a settlement with mobile operators, including Vodafone Idea, for exiting cell sites before the expiry of contracts at a payment of around Rs 5,550 crore.

Of the settlement amount, which includes shares of Indus, the merged entity will get about Rs 1,820 crore in cash, which will be booked over the next 12 quarters. For the remaining, a non-cash settlement has been arrived at through contract extensions for five years, through which the company is likely to get around Rs 3,730 crore.

Also read| Insolvency and Bankruptcy Code passes Supreme Court test; setback to defaulters

Bharti Infratel chairman Akhil Gupta said the company is in the process of getting approval from creditors for the merger of Bharti Infratel and Indus Towers. He said there would be a meeting on February 2 to get the approval of Bharti Airtel shareholders.

Gupta said the merger is expected to be completed in April-June 2019 if there are no unexpected delays at the National Company Law Tribunal and the Department of Telecommunications. During the company’s post-earnings call on Thursday, Gupta said all the charges with Airtel, Tata, Telenor, Vodafone Idea have been settled for all exits that were received up to November 30, 2018.

He said operators have jointly paid Rs 55 crore in cash to Bharti Infratel during the October-December 2018 period and the rest of the payment will made in monthly instalments with interest spread over
36 months.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition