Latest News | Airtel to Acquire Vodafone's 4.7 Pc Stake in Indus Towers if Funds Are Used for VIL
Get latest articles and stories on Latest News at LatestLY. Telecom operator Bharti Airtel on Friday said it has signed an agreement to buy Vodafone's 4.7 per cent stake in Indus Towers on the condition that the proceeds will be used for investment in Vodafone Idea and clearing dues of the mobile tower company.
New Delhi, Feb 25 (PTI) Telecom operator Bharti Airtel on Friday said it has signed an agreement to buy Vodafone's 4.7 per cent stake in Indus Towers on the condition that the proceeds will be used for investment in Vodafone Idea and clearing dues of the mobile tower company.
Debt-ridden Vodafone Idea (VIL) has been unable to pay dues of Indus Towers, and both VIL and promoter Vodafone have proposed a payment plan to clear the outstanding amount by July 15.
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In the meantime, VIL has committed to pay certain minimum amount each month to Indus Towers.
"Bharti Airtel has...entered into an agreement with Vodafone to buy 4.7% equity interest in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea Limited (VIL) and simultaneously remitted to Indus Towers to clear VIL's outstanding dues," Airtel said in a statement.
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The Sunil Mittal-led firm said the purchase would be at an attractive price representing a significant discount typically available for such large block transactions.
"In addition, Airtel is also protected with a capped price which is lower than the price for the block of Indus shares sold by Vodafone on February 24, 2022. This shall be value accretive to Airtel and protect its existing significant shareholding in Indus Towers.
"Any such acquisition shall only be done when such proceeds are confirmed to be utilised by Vodafone to infuse as equity into VIL including any regulatory or shareholders' approval being fully obtained," Airtel said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)