Vodafone to sell five per cent stake in Indus Towers to Airtel

Vodafone currently holds about 28 per cent in Indus Towers.
Vodafone logo outside its outlet. (File photo| PTI)
Vodafone logo outside its outlet. (File photo| PTI)

NEW DELHI: The cash-strapped Vodafone Idea Limited (VIL) could get the capital infusion from its British parent Vodafone Group Plc as the company is in talks to sell up to 5 per cent stake in Indus Towers to rival Bharti Airtel.

With this deal, the Vodafone Group estimates to fetch over Rs 3,300 crore, and the proceeds from the sale will be used in debt-laden telco. At present, Bharti Airtel and Vodafone Group each hold a stake of 41.73 per cent and 28.12 per cent in Indus Towers.

In its recent investor call, the Vodafone Idea set March-end as the deadline for raising capital to finance its operations. Vodafone Group and the Aditya Birla Group (ABG) own 44.39 per cent and 27.66 per cent, respectively in Vodafone Idea as its co-promoters.

The company recently opted to convert its AGR and spectrum dues into equity, which made the Indian government the biggest stakeholder in the third largest telecom company. Vodafone's net debt is Rs 1.97 lakh crore at December-end.

In its third quarter that ended December 31, Vi reported net loss widened to Rs 7,234.1 crore from Rs 7,144.6 crore in the year earlier as operating and interest expenses rose. At the same time, it lost a further 5.8 million subscribers in December.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com