Business

Idea Cellular Q2 net loss widens to Rs1107.7 crore; shares fall

Idea Cellular Q2 net loss widens to Rs1107.7 crore; shares fall

"In the event that the completion of the sale of the standalone tower businesses precedes the completion of the proposed merger of Vodafone India and Idea, Vodafone India will receive Rs 3,850 crore (USD 592 million) and Idea will receive Rs 4,000 crore (USD 615 million)", the statement added. In a BSE filing, Idea Cellular said it will sell its 100 per cent stake in Idea Cellular Infrastructure Services Ltd (ICISL) to ATC.

In 2015, ATC agreed to acquire a controlling stake in Viom Networks Ltd for $1.2 billion.

"The parties will work together to further the expansion of high speed mobile networks in India", the statement said.

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

India, the world's No.2 mobile phone market, has been rattled by the aggressive pricing of Jio, the telecoms arm of billionaire Mukesh Ambani-controlled Reliance Industries. Idea's share of the sale to American Tower will be 40 billion rupees, while Vodafone India will get 38.5 billion rupees. It will have nearly 400 million customers with 35% customer and 41% revenue market share.

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Vodafone (LON:VOD) has inked a deal to sell its standalone tower business in India, the blue-chip telco has said. It will have revenue of Rs81,600 crore and an operating profit of Rs24,400 crore.

Vodafone and Idea have a combined portfolio of around 20,000 towers with a combined tenancy ratio of 1.65x as at 30 June 2017. Kumarmangalam Birla will be the Chairman of merged Vodafone-Idea entity and both the companies will have equal stakes in the merged entity over a period of time.

Media reports have said KKR & Co LP, which along with Canada Pension Plan Investment Board, already owns over a 10th of Bharti Infratel, the only publicly-traded mast operator in India, is leading a group of investors to take control of the company.

American Tower's deal is expected to close in the first half of next year, and generate about $320M in property revenue and $120M in gross profits for the first full year.