Bharti Infratel, the largest provider for telecom tower infrastructure in India is now planning to acquire the cellular towers from Vodafone and Idea Cellular.
Vodafone owns about 25,000 telecom towers and Idea has about 9,400 cellular tower through out the country. The total cost of this acquisition is yet to be calculated.
Bharti Infratel has a total cashflow of Rs. 2,000+ but it will require close to Rs. 5,000 crore if it wants to buy the towers from Vodafone and Idea. So, Bharti Infratel has to raise the remaining capital from somewhere to make its expansion plans a reality.
It is not clear whether it will be a complete or a partial buyout as all the 3 companies have refused to comment about the ongoing deal.
The deal is planned to be completed by November this year, but might take some more time as Bharti Infratel is yet to raise the required funds.
With this deal, Bharti Infratel will expand its presence to a vast extent. These additional towers will also help bring more business for the company. Well, we can’t comment more on this at the moment. So, let’s wait and watch.