Bharti Infratel (BHIN) has, yet again, extended the Indus Towers merger completion date by two months to February 24, 2020.
Management has cited lack of requisite government approvals for further extension of the long-stop date. It also stated that there is no assurance of the merger getting completed within the now extended timeframe as well.
Considering it has been challenging to secure merger-related permissions over the past 18-20 months, we believe BHIN could call off the merger. We perceive this as a negative for Bharti Airtel as well as Vodafone Idea, which were eyeing inflows from stake sale in the merged entity. Given weak tenancy additions on one hand and merger risks on the other, our stance remains cautious.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
Found this insight useful?
Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.