Idea and Vodafone have separately agreed to sell their respective standalone tower businesses in India to ATC Telecom Infrastructure Private Limited (American Tower”).
The tower business will be sold for an aggregate enterprise value of Rs. 7,850 crore. If the deal gets through, Idea Cellular will get Rs. 4,000 crore and Vodafone will get Rs. 3,850 crore.
On completion of Idea and Vodafone India merger, around 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.
As a part of the Idea and Vodafone India merger announcement of 20th March, 2017 both the parties had announced their intention to sell their standalone tower businesses to strengthen the balance sheet of the combined entity.