Idea Cellular Ltd and Vodafone India, in a joint press release have separately agreed to sell their respective standalone tower business in India to ATC Telecom Infrastructure Ltd(American Tower) for an aggregate enterprise value of Rs. 78.5 billion.
The standalone tower business of Idea and Vodafone India are pan India passive telecommunication infrastructure business, comprising combined portfolio of approximately 20,000 towers with combined tenancy ratio of 1.65x as of 30th June 2017.
After Idea and Vodafone India have completed their merger ~6,300 co-located tenancies on the combined standalone tower businesses will be merged into single tenancy, within a staggered period of two years, without a penalty fee.
The completion of the transaction is subject to customers closing condition and receipt of necessary regulatory approvals and is expected to take place during the first half of calendar year 2018.