Indus Towers-Bharti Infratel merger in limbo

NEW DELHI: The merger of Indus Towers and Bharti Infratel has hit another roadblock just before the deal closure deadline.

Indus Towers shareholders Vodafone Group of the UK and its local unit Vodafone Idea are reluctant to extend the date unless the pricing mechanism is revised to safeguard the cash the Indian telco expects to get on a possible exit after completion of the transaction.

This comes after a 21% drop in Bharti Infratel shares since the deal was announced in April 2018, reducing the amount payable to shareholders that choose to leave the merged entity. Government approvals for the deal were still awaited on Wednesday, the eve of the transaction deadline.