Bharti Airtel Ltd. and Bharti Hexacom Ltd. will sell a total of 16,100 telecom towers to their subsidiary Indus Towers Ltd. through a slump sale, according to exchange filings released on 6th Feb. Bharti Airtel will transfer around 12,700 towers for up to Rs 2,174.6 crore, while Bharti Hexacom will sell approximately 3,400 towers for up to Rs 1,134.1 crore.
The total cost of acquisition for Indus Towers, India’s largest mobile tower installer, will be a maximum of Rs 3,308.7 crore. The transaction is expected to be completed by March 31, 2025, subject to necessary approvals. Indus Towers’ board has approved the acquisition, which will be financed through borrowings. The company stated that the deal aligns with its strategy to expand market share and enhance operational synergies. The valuation was conducted independently, and the transaction is being carried out at arm’s length, as per the exchange filing.
Bharti Airtel and Bharti Hexacom mentioned in their filings that this transfer will lead to better management of tower operations within the group and improved focus on passive infrastructure assets. However, the deal excludes sites under the Universal Service Obligation Fund (USOF), which supports affordable telecom services in rural and remote areas of India.
Earnings Reports for Q3 FY25
The announcement comes after Bharti Airtel and Bharti Hexacom disclosed their earnings for the quarter ended December 31, 2024.
- Bharti Airtel reported a fourfold increase in its consolidated net profit to Rs 14,781.2 crore in Q3 FY25, beating analysts’ estimates. In the previous quarter, the telecom giant had reported a profit of Rs 3,593.2 crore.
- Bharti Hexacom posted a 23% rise in net profit, reaching Rs 260.90 crore, compared to Rs 212.70 crore in the same quarter last fiscal.
- Indus Towers reported on January 23 that its profit more than doubled to Rs 4,003 crore in Q3 FY25, significantly surpassing the Rs 1,540 crore profit from the same quarter last year.
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The tower sale is expected to strengthen Indus Towers’ market position while enabling Bharti Airtel and Bharti Hexacom to focus on their core telecom operations.
