“The board of directors, in its meeting held on October 24, 2019, has accepted the Committee of Directors (CoD's) recommendations to extend the long stop date by 60 days i.e. till December 24, 2019, on the basis of agreements on closing adjustments and other conditions precedent for closing,” Bharti Infratel
said in a regulatory filing.
Since the completion of merger is contingent upon receipt of requisite regulatory approvals and fulfilment of other conditions precedent, there can be no assurance that the merger can be completed within the extended time-frame, it added.
The company said the delay in the deal will also result in a lower payment to Vodafone Idea for its around 11.15 per cent stake.
Based on the net debt as on September 30, 2019 and such agreed closing adjustments, it is expected that the dilution of equity stake held by the current shareholders of Bharti Infratel
shall be lower on the account of lesser number of shares to be issued against swap of Indus shares vis-a-vis the illustrative shareholdings disclosed in the original transaction announcement, Bharti Infratel said.
At 09:41 am, Bharti Infratel was trading 6 per cent lower at Rs 221 on the BSE, as compared to a 0.27 per cent rise in the S&P BSE Sensex. A combined 4.4 million shares changed hands on the counter on the NSE and BSE so far.