NCLT and VIL shareholders grant approval for transfer of fibre assets to subsidiary

The National Company Law Tribunal (NCLT) has granted approval to VIL to hive off its fibre assets to its wholly owned subsidiary Vodafone Towers Limited. The operator had approached the NCLT Ahmedabad bench on April 11, 2019 for approval. Meanwhile, VIL’s shareholders and creditors have also approved the transfer of its fibre assets to Vodafone Towers. According to VIL, the proposed resolution approving the scheme was passed with the requisite majority by the company’s equity shareholders. VIL has 156,000 km of fibre assets which are currently worth Rs 150 billion. The divestment will help VIL achieve greater infrastructure sharing and operational efficiencies and cost optimisation.