Bharti Infratel, Indus Merger At Final Stage, Bimal Dayal To Be CEO Of New Entity

Two of the largest telecom tower firms in the country, Indus Towers and Bharti Infratel, are getting merged and the process is at advanced stage of completion, both the firms today said in a joint statement.

Indus-Towers-Appoints-Bimal-Dayal-As-CEO-Designate

Bimal Dayal, CEO – Designate, Indus Towers-Bharti Infratel

The firms also informed that the management of both the firms have decided to appoint Bimal Dayal, the current CEO of Indus Towers, as the new CEO of the joint entity. He will be responsible for the combined business and will take forward integration of the two companies in preparation of the merger.

Similarly, Hemant Ruia (currently CFO, Indus Towers) is proposed to be appointed as the Chief Financial Officer of the merged entity.

The existing leadership teams of both Indus Towers and Bharti Infratel will continue to manage their respective businesses till the merger becomes effective, the statement added.

Exactly a year back, both the companies had announced their interests to merge their tower businesses.

Before the merger, Bharti Infratel had 39,523 towers and Indus Towers has 123,639 towers. Combined, they will be having 163,162 towers and will operate in all 22 circles o fthe country. Earlier, Bharti Infratel and Indus Towers were operating in 7 and 15 circles respectively.

Structure of The New Firm

Bharti Airtel currently holds 53.5% stake in Bharti Infratel and the rest 46.5% are with the public. Indus Towers is joint venture between Bharti Airtel, Vodafone India and Idea Cellular and they hold 42%, 42% and 11.15% respectively in the firm. The rest 4.85% is being held by Providence Group.

Post the merger, Bharti Airtel and Vodafone India will merge their shares to have equivalent shares in the new entity and Idea Cellular will sell its stakes and move out from the new tower company.

In the new company or Indus Towers Limited, Bharti Airtel will have 37.2% stake where as Vodafone will have 29.4%, Providence will have 1.1% and the rest 32.3% will be with the public. The new entity will remain as a listed company and will trade on Indian bourses, a Bharti Airtel statement had said then.

The merger of Bharti Infratel and Indus Towers will create a pan-India tower company, with over 163,000 towers, operating across all 22 telecom service areas in India. The combination of the two companies’ highly complementary footprints will create a tower operator with the ability to offer the high quality shared passive infrastructure services needed to support the pan-India expansion of wireless broadband services using 4G/4G+/5G technologies for the benefit of Indian consumers and businesses.

The combined company will continue to offer high quality passive infrastructure services to all telecom operators on a non-discriminatory basis, thus helping to support the delivery of the Government of India’s vision of ‘Digital India’, expressed. both the firms.

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