Vodafone Idea says fiber infrastructure business demerged to Vodafone Towers

Vodafone Idea has completed the demerger of its fibre infrastructure by transferring the assets to a wholly-owned unit, Vodafone Towers Ltd (VTL). This paves the way for the telecom company to monetise its optic fibre assets, which was pegged at $430-450 million.
“Arrangement between the Company and its wholly owned subsidiary Vodafone Towers Limited (VTL), for transfer of Fiber Infrastructure Undertaking of the Company to VfL, by way of demerger, and filing of the certified copy of the order with the Registrar of Companies on October 15, 2019, the Scheme has become effective and consequently the Fiber Infrastructure Undertaking of the Company stands demerged from the Company to VfL,” said the telecom operator in a regulatory filing on Wednesday.
Shares of Vodafone Idea surged by 6.49% to close at Rs 6.56 a piece on the BSE on Wednesday, on the back of this announcement and reports of a possible two year spectrum due moratorium being contemplated by the government for the sector.