Now, Bharti In­fratel & In­dus Ob­ject to RCom-Air­cel Merger

The Economic Times - - Companies: Pursuit Of Profit - Our Bu­reau

Mumbai: Tower com­pa­nies Bharti In­fratel and In­dus Tow­ers are the lat­est to ob­ject to a pro­posal to merge Re­liance Com­mu­ni­ca­tions’ wire­less busi­ness with Air­cel, be­ing heard in the Na­tional Com­pany Law Tri­bunal (NCLT).

Both Bharti In­fratel and In­dus Tow­ers on Thurs­day said they needed clar­ity on how their dues will be paid off by RCom if the merger goes through, while DoT re­it­er­ated its Wed­nes­day’s stance that the two tel­cos would need per­mis­sion from the Supreme Court for the merger since a 2G-re­lated case is pend­ing be­fore the top court. Shares of RCom dropped 7.78% on Thurs­day to close at ₹ 23.10 a piece on BSE. An NCLT bench of judges BSV Prakash Ku­mar and V Nal­lase­na­p­a­thy will con­tinue to hear the ad­mis­sion plea on Thurs­day, Au­gust 10.

In­fratel and In­dus Tow­ers have joined equip­ment sup­plier Eric­s­son, which have out­stand­ing dues to re­cover from RCom, and GTL In­fra­struc­ture’s Chen­nai Net­work In­fra­struc­ture, which had bought 17,500 mo­bile tow­ers from Air­cel, to ob­ject to the merger pro­posal be­ing heard by the tri­bunal.

“Post the de­merger, as­sets will be handed over to the new com­pany formed and my client will be left with the li­a­bil­i­ties of a shell com­pany,” said the coun­sel rep­re­sent­ing Bharti In­fratel. “How it will pay off the debts, what its busi­ness will be, we have no clar­ity on that.”

The cred­i­tors said a meet­ing needs to be con­vened to dis­cuss the pro­posed merger be­fore it is taken up by NCLT.

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