Unit of Singtel associate Bharti Airtel gets approval for merger

THE deadline for a scheme to merge Indian telco joint venture Indus Towers and Bharti Infratel, a subsidiary of Bharti Airtel, has been extended after the scheme received foreign direct investment (FDI) approval from the Indian government, Bharti Infratel said on Monday.

Bharti Airtel is the Indian associate telco of Mainboard-listed Singtel.

Bharti Infratel's board of directors met on Monday and extended the long-stop date for the scheme to become effective till Apr 24, 2020, as the other actions and conditions required could not be completed by the previous extended long-stop date of Feb 24.

The extension is subject to agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the scheme.

The proposed merger will create one of the largest telecom tower companies in the world, with more than 163,000 towers.

"The final decision to implement the scheme will be taken by the board keeping in mind the best interest of the company and its stakeholders, including the assessment of the current crisis facing the telecom industry and the extent of its impact on the company's major customers," Bharti Infratel said.

Singtel shares closed unchanged at S$3.10 on Monday.