NEW DELHI: Vodafone Idea may be close to securing some much needed capital to meet its heavy cash requirements with sources confirming that the telecom provider is in negotiations with a consortium led by Oaktree Capital under which it may receive both debt and equity investments.
While the amount under question could not be independently ascertained, reports indicate that it might be as much as USD 2-2.5 billion. While no official comments have been made, sources in the know said that since Oaktree’s bid for DHFL may now be in rough seas, due to the last-minute bid by the Adani group, the US asset management company is likely looking at other attractive bets in India. Sources also say that the consortium includes several other firms including Varde Partners.
Vodafone Idea had said in September that it plans to raise as much as Rs 25,000 crore (USD 3.4 billion) both by selling equity and by raising debt. The Indian telecom service provider is also known to be in talks with other potential investors and sources add that the agreement with Oaktree was by no means a done deal.
Meanwhile, the company also received some funds from the long pending merger of Bharti Infratel and Indus Towers. According to the firm, with the merger now done, Vodafone Idea has received Rs 3,760.1 crore in cash for its 11.15 per cent holding in Indus, it said in a regulatory filing on Thursday.
Vodafone Group will hold 28.12 per cent stake in the merged entity, while the holding of Airtel Group will be about 36.7 per cent.
"...the Board has allotted 757,821,804 equity shares of Rs 10 each to the Vodafone group and 87,506,900 equity shares of Rs 10 each to PS Asia Holding Investments (Mauritius) Limited (Providence) aggregating to 28.12 per cent and 3.25 per cent respectively in the post-issue share capital of the company," Bharti Infratel said.