Bharti Infratel shares which rose in early trade on September 1, 2020 by as much as 5% pared all morning gains and settled lower by over 4% in the noon session at Rs. 188.7 as against previous close of Rs. 198.25 shares apiece on the BSE.
The gains in the early morning session were largely to do with the company's decision of taking ahead the merger plan with Indus Towers. On BSE, the stock soared 4.91 percent to Rs. 208, while on the NSE the counter jumped 5.16 per cent to Rs. 208.80.
"After deliberations, the Board has decided to authorize the Chairman to proceed with the Scheme and to comply with other procedural requirements for completion of the merger including approaching NCLT to make the Scheme effective subject to certain procedural condition precedents," said Bharti Infratel in a statement.
The likely holding pattern in the merged entity as per the statement can be:
Vodafone may have a shareholding of 28.2% while others including Airtel and Providence Equity Partners (PEP) may own 36.7% and 3.2% stake, respectively. Total for Indus share swap: 31.4 percent and Infratel shareholders: 68.6 percent
Further the company said the shareholding is subject to change basis the closing adjustments.
Also, Vodafone Idea has decided to sell off its 11.15% stake in Indus Towers "The above is basis cash consideration chosen by Vodafone Idea Limited (VIL) for its 11.15% shareholding in Indus which will be based on 60 days VWAP as at Closing date (and agreed closing adjustments). Based on today's calculation the cash consideration comes to approx. INR 4,000 crore," said the company.