Vodafone Idea denies report of being acquired by US co; shares fall 6 per cent

NEW DELHI:   Telecom service provider Vodafone Idea Limited (VIL) on Monday denied reports of being acquired by Verizon, Amazon, or Starlink. The company’s share closed 6.41% down on the BSE on Monday. As per a report by an online portal, the three US giants are in the race to acquire the cash-strapped telco. The loss-making telco, in an exchange filing, said the news report is incorrect and the company is not in any such discussion with any of these companies.

“This is in relation to a News Item titled, ”Vodafone Idea to be acquired by a US telecom giant Soon? Verizon, Amazon, or Starlink, in the race”, which is doing rounds in electronic and social media. We wish to submit that the said News Item is incorrect. The Company is not in any such discussion with any of the named parties,” said the company in an exchange filing.

The loss-making company is not in good health, as its subscriber base is declining and debts are piling up. The company reported a loss of Rs 7,840 crore in its earnings report for April to June 2023. However, its average revenue per user (ARPU) increased by 3% sequentially to Rs 139. The company’s total gross debt (excluding lease liabilities and including interest accrued but not due) as of June 30, 2023, stood at Rs 2,11,760 crore.

However, there are some positive things happening with the telco as it paid Rs 17,000 to the Department of Telecommunication (DoT). It includes the dues for the 5G spectrum and other spectrum charges acquired previously.  “We wish to inform you that the company…  made the requisite payment of Rs 1,701 crore (including interest) to the Department of Telecommunications, Government of India, towards 2022 spectrum auction instalment, in accordance with the terms of Notice Inviting Applications dated 15th June, 2022,” said the company in an exchange filing.