Idea shares down almost 4% on disappointing Q2 show

Idea Cellular’s revenue from operations fell about 20% to Rs7,466 crore

Under this merger, Vodafone India will get an implied enterprise value of Rs. 82,800 crores and Idea Rs. 72,200 crores.

Idea and Vodafone India have a total of about 20,000 towers, with 1.65 tenants each on average, as of 30 June 2017.

Post merger the companies will share nearly 400 million customers, with 35% customer and 41% revenue market share.

Idea will use proceeds from the tower sale to expand 4G coverage as well, Himanshu Kapania, the carrier's managing director, said by phone Monday. Reliance Jio, in which Ambani has invested $20 billion, launched its services in September.

Vodafone will net $592m from the deal with Indian partner Idea Cellular receiving $615m.

"With little in the way of share price growth over the last two years, investors have focused more on the attractive 6% yield", said Graham Spooner, analyst at The Share Centre, as quoted by the newswire, adding that areas to concentrate on will be the group's "performance in key European operations, which have been mixed, along with India and other emerging markets".

The Board has approved the execution of a share purchase agreement amongst ATC Telecom Infrastructure, the Company and ICISL.

A person familiar with the latest transaction said that, in the aftermath of this deal, the industry is now consolidated into three large tower operators-ATC, Indus Towers and Bharti Infratel Ltd, apart from state-run Bharat Sanchar Nigam Ltd. Ascend is backed by IDFC Alternatives. Stock of Idea was trading 5.62 per cent down at Rs 91.60 on the BSE in early trade.

"In the long term, we have a positive view on Idea and the deal could be viewed as a positive move with the 40 billion rupee-transaction value aiding Idea in cutting down its balance sheet debt", said Gaurang Shah, Head Investment Strategist at Geojit Financial Services.

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