The company's in its filing with the stock exchange said that the Vodafone and Idea Cellular Limited separately agreed to sell their tower businesses to ATC for an aggregate sum of Rs 7,850 crore.
Idea Cellular board has approved the sale of its subsidiary Idea Cellular Infrastructure Services Limited (ICISL) — the standalone tower business — to ATC Telecom for an enterprise value of Rs 4,000 crore. The sale is likely to be completed in the first half of 2018.
Vodafone has also sold its tower business in India to ATC Telecom for an enterprise value of Rs 3,850 crore.
Idea, in its filing with the stock exchange said that the Vodafone and Idea Cellular Limited separately agreed to sell their tower businesses to ATC for an aggregate sum of Rs 7,850 crore.
The money from the tower sale will be used to fund additional capital expenditure to expand 4G services, Himanshu Kapania, managing director of Idea Cellular told CNBC-Tv18.
The standalone tower business of both companies comprises of a combined portfolio of about 20,000 towers with a tenancy ratio of 1.65 as on June 30, 2017.
The company’s tower business reported a standalone revenue of Rs 758.5 crore for the FY17 with a net worth of Rs 662.3 crore.
Earlier this year, Vodafone India and Idea Cellular announced their merger in order to become the largest telecom player in the country.
The merged entity will avoid payment of exit penalties as the combined standalone tower businesses will collapse into single tenancies over a two-year period.
