Published: Tue, November 14, 2017
Markets | By Erika Turner

Idea Cellular, Vodafone India to sell towers business to ATC Telecom

Idea Cellular, Vodafone India to sell towers business to ATC Telecom

Under deal, the company will add about 20,000 communications sites to its existing Indian portfolio.

Idea Cellular and Vodafone India agreed to sell their mobile phone tower units to American Tower Corp., as carriers seek to sell assets to pare their mounting debt amid a price war that eroded their profitability. "The parties will work together to further the expansion of high-speed mobile networks in India", an official statement read.

The Tower purchase would give Boston-based ATC, which operates nearly 150,000 communications sites globally, an additional 20,000 towers in a country with more than 1 billion mobile-phone subscribers.

"The aggregate cash consideration for the transactions is expected to be Rs 78.5 billion, or approximately $1.2 billion at current exchange rates, subject to customary closing adjustments", said the U.S. based tower company that had earlier acquired Viom Networks, another Indian tower company. Reliance Jio, in which Ambani has invested $20 billion, launched its services in September.

Morocco fans riot in Brussels and Paris
North African nations Morocco and Tunisia took contrasting routes as they qualified for the 2018 World Cup in Russian Federation . A stone-throwing mob injured 22 police officers as a riot erupted in Brussels after Morocco qualified for the World Cup .

Vodafone (LON:VOD) has inked a deal to sell its standalone tower business in India, the blue-chip telco has said. Its offers of free voice calls and data plans, which continued for months, eroded the revenue and profits of competitors such as Idea and Bharti.

In the event that the completion of the sale of the standalone telecom tower businesses precedes the completion of the proposed Idea-Vodafone, Vodafone India will receive $592 million, while Idea will get $615 million.

Last month Bharti Infratel said it would consider buying out its partners in Indus Towers, where Vodafone has a 42 percent stake and Idea along with private equity firm Providence owns 16 percent.

Earlier this year, Vodafone India and Idea Cellular announced their merger in order to become the largest telecom player in the country. The deal is expected to close in 2018. The transactions are expected to be immediately accretive to AFFO per share, are subject to customary closing conditions and regulatory approval and are expected to close in the first half of 2018.

Like this: