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    Vodafone Idea falls 5% on delay in Infratel-Indus Tower merger

    Synopsis

    Shares of Vodafone Idea fell nearly 12 per cent on Monday after Bharti Infratel extended the deadline for its merger with Indus Towers by two more months to April 24.

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    Vodafone clarified in a regulatory filing that the parties agreed to further extend the extended deadline “to complete the remaining conditions precedent including the pre-closing adjustments".
    Shares of Vodafone Idea fell over 5 per cent in Tuesday’s trade amid a flurry of news regarding the stake sale in Indus Towers and AGR payments.

    Shares of Vodafone Idea fell nearly 12 per cent on Monday after Bharti Infratel extended the deadline for its merger with Indus Towers by two more months to April 24.

    The delay in completion of the deal came as a blow to Vodafone Idea as it was eyeing about Rs 5,500 crore from stake sale in Indus Towers. Vodafone Idea holds 11.15 per cent stake in Indus Tower.

    Vodafone clarified in a regulatory filing that the parties agreed to further extend the extended deadline “to complete the remaining conditions precedent including the pre-closing adjustments".

    The company also said the Department of Telecommunications has provided its approval for the merger under the FEMA Regulations on 21 February 2020.

    Meanwhile, lenders met Department of Telecommunications officials over the weekend, cautioning that invoking bank guarantees of the operator against statutory dues will lead to defaults since the telco is in no position to repay the banks.

    The shares of the company pared all losses and closed 1.80 per cent higher at Rs 3.95 on BSE.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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