Vodafone directors resign as Airtel takes control of Indus Towers

After Bharti Airtel increased its ownership in Indus Towers to more than 50%, executives from the UK's Vodafone Group PLC who were non-executive directors on the board of the tower company resigned. Indus Towers is expected to become a Bharti Airtel subsidiary as a result of the larger investment.

Both former CEO Sunil Sood and former Vodafone Idea Managing Director and CEO Ravinder Takkar have resigned from their positions on the Indus Towers board. Additionally, a notification issued by Indus Towers on Monday after market hours states that Thomas Reisten, a former executive of Vodafone PLC, has also submitted his resignation.

"The said resignations are in accordance with the provisions of the Company’s Articles of Association, following the cessation of the Board Appointment Rights of the Vodafone Shareholders in the Company," Indus Towers said in its filing.

A provider of telecom infrastructure, Indus Towers installs, owns, and oversees passive infrastructure for a range of mobile operators. With a total tower base of 229,658, a closing sharing factor of 1.65, and a net profit of Rs 2,224 crore, the corporation ended the quarter that ended on September 30, 2024.

Vodafone Idea (Vi) is the largest Indus Towers customer. Vi had previously been unable to make timely payments to Indus due to a cash shortage. However, after raising several billion dollars, Vi is now in a lot stronger position to raise capex while also paying off its debts.

CCI authorises Airtel's increase in ownership

Following a share buyback by the telecom infrastructure company, Bharti Airtel has been given permission by the Competition Commission of India (CCI) to enhance its ownership of Indus Towers Limited.

"The Commission approves an increase in the percentage shareholding of Bharti Airtel Ltd (Bharti Airtel) in Indus Towers Ltd (Indus Towers) to 50.005 per cent pursuant to buy back of shares by Indus Towers," the CCI stated in a release.

After the telecom infrastructure company's ongoing Rs 2,640 crore share buyback plan was completed, Bharti Airtel declared in August that it will own more than 50% of Indus Towers. Since Airtel now owns more than half of the company, it will have a controlling stake in Indus Towers and will be considered a subsidiary. 

On August 14, Indus Towers started repurchasing more than 5.67 crore shares (56,774,193 equity shares) at a price of Rs 465 per share, which amounts to around 2.107 percent of all equity shares in the company's paid-up share capital.