INSUBCONTINENT EXCLUSIVE:
US-based asset management firm Providence Equity Partners is likely to join Vodafone Idea in selling their stakes in Indus Towers for
said.
Under the terms of the merger, Providence, which owns 4.85 per cent in Indus Towers, can monetise a 3.35 per cent stake and get a 1.1
per cent stake in the combined tower entity for the remaining 1.5 per cent
Providence is likely to eventually sell these shares, too, and fully exit the merged entity, one person told ET.
Vodafone Idea has the
shares during the 60 trading days prior to the Indus-Infratel merger closure
Vodafone Idea would cash out to garner funds to step up 4G network spends and compete with Reliance Jio Infocomm.
Earlier this week, Bharti
The National Company Law Tribunal is likely to consider the Bharti Infratel-Indus merger at a scheduled hearing on May 14.
Analysts said if
Providence and Vodafone Idea exercise their cash exit options, it could increase the leverage ratio (net debt to Ebitda) of the merged
Infra and Vodafone, the two other investors in Indus Towers holding 42 per cent each, will jointly control the merged tower company as equal
shareholders with equal board representation
