The National Company Law Tribunal has approved the planned merger of tower company Bharti Infratel with Indus Towers, according to a regulatory filing. "...National Company Law Tribunal (NCLT), Chandigarh Bench, vide its order dated May 31, 2019, has sanctioned the scheme of amalgamation and arrangement between Indus Towers Ltd (Transferor Company) and Bharti Infratel Ltd (Transferee company) and their respective shareholders and creditors...," Bharti Infratel said in a BSE filing.
The proposed merger, which will create a mega tower company in India, will also require approval from the Telecom Department. "The scheme shall become effective on the date on which certified copy of the order of...NCLT is filed with Registrar of Companies upon fulfillment/waiver of other conditions prescribed in the scheme. The effective date will be communicated to the stock exchanges for further public dissemination as and when the scheme becomes effective," it said.
Last year, Bharti Airtel, Vodafone Group and Idea Cellular (now Vodafone Idea Ltd) had agreed on the merger that will create the largest mobile tower operator in the world, outside China. The mega tower company born from the merger will have an estimated 1.63 lakh towers in 22 telecom service areas in the country. Last month, Bharti and Vodafone Group had named Bimal Dayal as the chief executive officer of the tower company proposed to be formed from the merger of Indus Towers and Bharti Infratel and had said the merger process is in "advanced stage of completion".