Vodafone To Sell 2.4% In Indus Via Block Deal

“Bharti Airtel (“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 (Vi) and simultaneously remitted to Indus Towers to clear Vi’ outstanding dues,” the Sunil Mittal-led telco said in an official statement.

The deal will boost Airtel’s stake in Indus to 46.4%.

The Airtel-Vodafone deal announcement came just a day after Vodafone Group Plc raised around Rs 1,443 crore by selling a 2.4% stake in Indus Towers through a block deal to unnamed investors on Thursday.

Airtel did not share the deal financials immediately, But the company said “the acquisition purchase would be at an attractive price, representing a significant discount, typically available for such large block transactions”.

Airtel shares closed 2.64% higher at Rs 688.45 on BSE on Friday, the deal was announced after market hours.

Airtel, the company, said 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”.

It added that the deal would be value accretive to Airtel and protects its existing significant shareholding in Indus Towers.

On Wednesday, UK’s Vodafone had said it was in talks with one of Indus’ largest shareholders to sell 4.7%. People aware of the matter had told ET that Bharti Airtel was this shareholder. The UK company has also said it was in talks with “several interested parties” to sell its balance stake in the tower company.

Vodafone has said the cash it raises via these stake sales would be infused in loss-making Vodafone Idea. The UK company and India’s Aditya Birla Group wish to subscribe to an issue of equity shares by Vi in their capacity as co-promoters.

February 26, 2022