Idea Cellular Reports Net Loss of Rs 1107 Crore in Q2

Idea Cellular, Vodafone to sell tower businesses to ATC Telecom for ...

"Second quarter earnings were bad and the tower deal valuation is not great", said Naveen Kulkarni, co-head of research at Phillipcapital India Pvt Ltd.in Mumbai on phone.

In the event that the completion of the sale of the standalone tower businesses precedes the completion of the proposed merger of Vodafone India and Idea, Vodafone India will receive Rs 3,850 crore ($592 million) and Idea will receive Rs 4,000 crore ($615 million).

"We expect the addition of these two high quality portfolios [Vodafone India and Idea Cellular] to be highly complementary to our existing assets, and to contribute to long-term growth as India's leading mobile operators accelerate their 4G network deployments", American Tower Corp Chief Executive Officer Jim Taiclet said according to The Hindu. Further, SG&A associated with the assets is expected to be less than Rs 1 billion (approximately $10 million) for the first year.

The Idea-Vodafone merger will create the world's second-largest and India's largest telecom firm, overtaking Bharti Airtel Ltd. Reliance Jio, in which Ambani has invested $20 billion, launched its services in September.

More news: Chinese spend billions shopping online on 'Singles Day'
More news: Hulu Comes To Nintendo Switch Today
More news: Palestinian Authority claims Israel backs al-Qaeda in Syria

As part of the transactions, Vodafone and Idea Cellular would get the service level and process efficiency benefits from American Tower, means these two telecom operators would continue to get usual service from these tower sites. It will have revenue of Rs81,600 crore and an operating profit of Rs24,400 crore.

"This transaction follows the Vodafone India/Idea merger announcement of March 20, 2017 whereby the parties announced their intention to sell their individual standalone tower businesses to strengthen the balance sheet of the combined business", it said. Together, Idea Cellular and Vodafone India have a debt of Rs1.08 trillion.

Idea will sell its entire stake in ICISL, and Vodafone India will sell a business undertaking to ATC TIPL. The sale of the tower business is likely to be completed in the first half of 2018. Stock of Idea was trading 5.62 per cent down at Rs 91.60 on the BSE in early trade. The merger, expected to be completed in 2018, is awaiting various approvals.

Related:

Comments

Latest news

National Football League owners committee says Roger Goodell contract talks are 'progressing'
Jones called-out Blank during the week regarding NFL Commissioner Roger Goodell's contract extension. Jones acknowledged that he was avoiding Blank later when asked about the awkwardness.

President Trump Strikes Back at 'Short and Fat' Kim Jong Un
North Korea has conducted dozens of ballistic missile tests in defiance of United Nations sanctions. In September Kim described Trump as a "mentally deranged US dotard" whom he would tame with fire.

Turkey rushes to help Iraq natural disaster victims
Iranian TV said Iraqi officials have reported at least six people dead on Iraq's side of the border from Sunday's quake. There was no initial word on damage or injury resulting from the quake.

At least 16 dead as overloaded boat capsizes in India
Several teams of National Disaster Relief Force (NDRF ) were rushed to the spot to rescue people. Rajappa also announced an ex gratia of Rs 8 lakh to each of the families of the deceased.

Every 'Harry Potter' movie is coming to HBO
Software company Niantic Labs is basing this new game on the universe of Harry Potter , an equally massive cultural obsession. Niantic had previously attempted to popularise AR with Ingress , a location-based sci-fi game released in 2012.

USA aircraft carriers to conduct joint drill in Pacific
Addressing the North Korea crisis, the US President tweeted: "NoKo has interpreted America's past restraint as weakness". Trump also noted that the three US aircraft carriers "are appropriately positioned" near the Korean Peninsula.

Walmart to Offer Black Friday Deals Early on Its Website
Target says its stores will be open from 6 p.m.to midnight on Thanksgiving, and they will reopen at 6 a.m. on Black Friday. Most Kmart stores will be open from 6 a.m. -10 p.m. on Thanksgiving, before reopening at 6 a.m. on Black Friday.

Carter Page Coordinated Russia Trip with Top Trump Campaign Officials
Both men served on a campaign foreign policy advisory committee under the supervision of then-Sen. Gordon , a former Trump campaign adviser who said he was present during the meeting.

Facebook wants you to upload nude photos to combat 'revenge porn'
The trial is the latest in several measures Facebook has taken to clamp down on the sharing of revenge porn . Let's say you have a spiteful ex who decides to embarrass you by posting a nude photo made in private.

Thrasher, FSU Ban Greek Organizations Indefinitely After Pledge's Death
Those who do not comply with the interim suspension could be disciplined immediately, according to the release. He says the timetable to lift the suspension will be up to the students and how well they can behave.

Trump Administration Announces The End To Protected Status For Nicaraguans
Already, 50,000 Haitian TPS recipients, who expect administrative decisions by Thanksgiving, are preparing for the worst. Haitians and Salvadorans are also waiting to hear what the United States is going to do with their TPS designation.

Masood Azhar's nephew, top JeM terrorist killed in Pulwama encounter
Security forces taking position with the first round of firing by the militants retaliated leading to the killing of the three. IGP Kashmir zone, Muneer Khan said: "We will ask Pakistan to collect the body of Masood Azhar's nephew as JeM has owned it".

World of Warcraft Announces Major Expansion Called Battle for Azeroth
A new system of Uncharted Islands will allow groups of three players to explore discrete areas with randomized content. Sadly, the Blizzard Classic team didn't have announcements of any other projects in the works at Blizzcon this year.

NYPD says it is building rape case against Harvey Weinstein
Weinstein's spokeswoman told Vanity Fair that the film producer "unequivocally denied" all allegations of nonconsensual sex. De la Huerta has been locked in a legal battle with Lionsgate over her work in the movie Nurse 3D.

NFL Players Were Heartbroken By Deshaun Watson's Torn ACL
He was tied for the league lead with 19 touchdown passes and had gained almost 2,000 total yards (1,699 passing and 269 rushing). In a shootout loss to the Seahawks, Watson threw for 402 yards and four touchdowns while rushing for another 67 yards.

Other news