Indus-Bharti Infratel merger deadline extended to end-December 2019

The board of Bharti Infratel has extended the deadline to complete its merger with Indus Towers by 60 days to December 24, 2019. The dilution of shares by existing holders, however, will be lower than that announced earlier. This will lower the cash to be paid to Vodafone Idea on the telco’s possible exit from the merged entity. Based on net debt, as of September 30, 2019, and the agreed closing adjustments, it is expected that the dilution of the equity stake held by Bharti Infratel’s current shareholders will be lower on account of fewer number of shares to be issued against the swap of Indus shares vis-à-vis the illustrative shareholdings disclosed in the original transaction announcement. The company’s debt position has worsened since the merger announcement in April 2018.