Idea Cellular is in the limelight today morning with the stock price going up some 2.5% at Rs.63.20. It has a 10% UC at Rs.67.80.
The company announced yesterday after market hours that it has completed sale of its pan-India standalone tower business, by way of divesting its entire stake in ICISL (100% subsidiary of Idea), to ATC Telecom Infrastructure Private Limited (“ATC”).
The transaction has been closed with an enterprise value of Rs. 4000 crore for approximately 9,900 standalone towers.
Vodafone’s sale of its standalone tower business to ATC has already been completed earlier for an enterprise value of Rs. 3850 crore. Post the completion of Vodafone India and Idea merger, 6,300 co-located tenancies of the two operators on the combined standalone tower portfolio will collapse into single tenancies over a period of two years without the payment of exit penalties.
With this both Idea and Vodafone India have now monetised the standalone tower assets for a total enterprise value of Rs. 7850 crore, as per the timelines provided at the time of the announcement in November 2017.