No govt nod to Bharti Infra, Indus merger; deadline extended by 2 months

The merger of Bharti Infratel and Indus Towers yet again failed to receive the Centre’s nod. The deadline for the completion of the amalgamation has been extended by two months to February 24, 2020.

The Department of Telecommunications is required to take approval from the finance ministry for the deal, mainly on account of international arbitration of an old case when Vodafone bought Hutchison stake in the Indian telecom arm in an $11-billion deal.

The merger would have unlocked value to the tune of Rs 5,000 crore for Vodafone Idea, which is struggling to generate cash to pay dues.

The valuations have now gone down from what was estimated earlier and is only adding to the woes of Vodafone Idea. It currently holds 11.15 per cent in Indus Towers.