Idea gets HC nod for infra demerger

MUMBAI: Idea Cellular has got the Gujarat HC nod for demerging its passive infrastructure to Idea Cellular Towers Infrastructure, its wholly-owned subsidiary.

This arm will have Idea���s 11,000 towers in nine circles and will merge with Indus Towers, the JV between Bharti Airtel, Vodafone Essar and Idea. The HC also allowed Idea to adjust Rs 544-crore non-compete fee paid to Spice Communications against balance in securities premium account, it said.

Idea Cellular had announced the acquisition of Spice in June past year, paying over Rs 2,700 crore for a 40.8% stake. At that time, Idea Cellular had said it would pay Rs 544 crore as non-compete fee.

The towers hive-off was first proposed by the company board in July 2007 and was approved by shareholders and creditors in July 2009. Idea���s scrip closed at Rs 80.20, down 1.23% over the previous close.

Idea holds a 16% stake in Indus, while the other two JV partners have a 42% holding each. With the approval for the hive-off, this stake will be held through the new tower company. Increasingly, Idea is opting for shared towers, instead of owned towers to convert capex into opex. As a result, it will lower the operating margins going forward.