Shareholders and creditors of telecom operator Vodafone Idea Ltd. have approved plan to transfer optical fibre assets to its wholly-owned subsidiary Vodafone Towers Ltd.
“The proposed resolution approving the scheme was passed with requisite majority by equity shareholders of the company,” Vodafone Idea informed BSE on Saturday.
The company had proposed to transfer its telecom fibre infrastructure to Vodafone Towers before monetizing it and approached the National Company Law Tribunal Ahmedabad on April 11, 2019, for its approval.
The meeting of shareholders and creditors of the company were separately held on June 6.
“The proposed resolution approving the scheme was passed unanimously by secured creditors and unsecured creditors of the company,” Vodafone Idea said.
According to an industry source, Vodafone Idea has received valuation of around Rs 15,000 crore for its around 1.56 lakh kilometer long telecom fibre assets.
The company had earlier said that it would be beneficial to restructure its business by divesting the Fibre Infrastructure Undertaking into a separate legal entity with sharper and dedicated focus on this segment business so as to achieve greater infrastructure sharing, operational efficiencies and cost optimization, resulting in more affordable and reliable telecommunications services to its consumers.―Bloomberg Quint