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ATC to buy tower businesses of Voda, Idea for Rs 7,850 cr

Press Trust of India  |  New Delhi 

Vodafone and -- which are slated to merge soon -- have decided to sell their respective tower businesses in to ATC Telecom Infrastructure for Rs 7,850 crore.

In a joint statement, the two companies said Idea will sell its entire holding in Infrastructure Services Ltd (ICISL) while Vodafone will divest its business undertaking to ATC Infra.

"In the event that the completion of the sale of the standalone tower businesses precedes the completion of the proposed of Vodafone and Idea, Vodafone will receive Rs 3,850 crore (USD 592 million) and Idea will receive Rs 4,000 crore (USD 615 million)," the statement added.

The deal is expected to be completed by the first half of 2018.

The standalone tower businesses of Vodafone and Idea comprise a combined portfolio of nearly 20,000 towers.

The tower deal will not affect the terms of the two companies.

"The receipt of these proceeds prior to completion was anticipated and provided for in the agreement and hence would not affect the agreed terms of the Vodafone and Idea merger, including the amount of debt which Vodafone will contribute to the combined company at completion," it added.

The sale of tower business is subject to regulatory and other approvals.

Earlier this year, Vodafone and Idea had agreed to merge their operations to create the country's largest telecom operator worth of more than USD 23 billion with a 35 per cent market share.

Vodafone MD Sunil Sood had earlier said the of the two companies was on track for completion in 2018.

The combined entity of Vodafone and Idea Cellular, which are currently India's number 2 and 3, respectively, would dislodge Bharti Airtel to counter the bruising price war in the worlds second-largest telecom market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 13 2017. 10:22 IST