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Vodafone Idea transfers fibre infra to subsidiary after creditors approval

The meeting of shareholders and creditors of the company were separately held on June 6

Press Trust of India  |  New Delhi 

Vodafone Idea
Vodafone Idea

Shareholders and creditors of have approved plan to transfer assets to its wholly-owned subsidiary Vodafone Towers Limited.

"The proposed resolution approving the scheme was passed with requisite majority by equity shareholders of the company," informed BSE on Saturday.

The company had proposed to transfer its to Vodafone Towers before monetising it and approached the National Company Law Tribunal Ahmedabad on April 11, 2019, for its approval.

The meeting of shareholders and creditors of the company were separately held on June 6.

"The proposed resolution approving the scheme was passed unanimously by secured creditors and unsecured creditors of the company," said.

According to an industry source, Vodafone Idea (VIL) has received valuation of around Rs 15,000 crore for its around 1.56 lakh kilometre long telecom fibre assets.

The company had earlier said that it would be beneficial to restructure its business by divesting the Fibre Infrastructure Undertaking into a separate legal entity with sharper and dedicated focus on this segment business so as to achieve greater infrastructure sharing, operational efficiencies and cost optimization, resulting in more affordable and reliable to its consumers.

First Published: Sat, June 08 2019. 15:05 IST
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