Vodafone Plc sells 18% stake of Indus Towers

British telecom major has sold stake through block deals.

  • It has raised Rs 15,300 from the stake sale
  • Vodafone Plc’s stake in Indus Towers has consequently decreased from 21.5% to 3.1%. Bharti Airtel has also announced acquiring additional 1% stake from market, increasing it’s stake in the Company to around 49%.
  • Proceeds from the sale will be used to primarily repay existing lenders (of Vodafone Plc).
    • The security package agreed upon during the merger of former Bharti Infratel and Indus Towers stipulated Vodafone Plc’s 21% stake as the primary pledge securing a $1.4 billion loan taken in 2019 to participate in Idea’s rights issue.
  • Indus Towers has a secondary charge on Vodafone’s stake to the extent of Rs 4,250 cr.

Vodafone Plc said in a note, “The placement raised Rs 15,300 crore (€1.7 billion) in gross proceeds, which will substantially repay Vodafone’s existing lenders concerning €1.8 billion in outstanding bank borrowings secured against Vodafone’s Indian assets.”

This statement implies that the stake sale would be only sufficient to repay the borrowings. Unlikely that anything would be left for Indus Towers.

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x