Vodafone Idea Limited, has informed the National Stock Exchange that approval has been received by its board of directors of the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013 between the Company and its wholly owned subsidiary Vodafone Towers Limited (VTL), for transfer of Fiber infrastructure undertaking of the Company to VTL, by way of a demerger.
Brief details of the Fiber Infrastructure undertaking. Fiber infrastructure business undertaking of the Transferor Company comprising of and including, underground and over ground optical fiber cables, on a going concern basis.
Turnover of the demerged undertaking and as a percentage to the total turnover of the listed entity in the immediately preceding financial year / based on financials of the last financial year. The turnover from Fiber Infrastructure business, which is proposed to be transferred, forms an integral part of the total turnover of the Transferor Company and since Fiber Infrastructure Undertaking does not charge any rentals for the captive tenancy used by the Transferor Company, separate financial statements of the Fiber Infrastructure undertaking are not relevant till the Appointed Date of the Scheme of Arrangement and therefore total turnover/revenue/income of such fiber infrastructure business being transferred is not ascertainable.
Rationale for demerger. Sharper and dedicated focus on the fiber infrastructure business so as to achieve greater infrastructure sharing, operational efficiencies and cost optimization resulting in more affordable and reliable telecommunications services to its consumers. – Communications Today Bureau.