In Short:
UK’s Vodafone Group Plc sold an 18% stake in Indus Towers for Rs 15,300 crore to repay lenders. Vodafone now holds 3.1% stake in Indus. Bharti Airtel acquired an additional 1% stake in Indus. Indus shares dropped 2.81% while Airtel shares were down 1.4% on Wednesday. The transactions aim to strengthen the telecom tower companies’ positions in the market.
Vodafone Group Plc Sells 18% Stake in Indus Towers for Rs 15,300 Crore
UK’s Vodafone Group Plc announced on Wednesday that it has sold an 18% stake in Indus Towers for Rs 15,300 crore through an accelerated book-building offering. The stake sale proceeds will be used to clear a significant portion of the company’s existing lender dues.
Sale Details
Vodafone Group Plc sold 484.7 million shares in Indus Towers, representing 18% of Indus’ share capital. The placing raised Rs 15,300 crore in gross proceeds which will be utilized to substantially repay Vodafone’s existing lenders.
Following the stake sale, Vodafone now holds a 3.1% stake in Indus Towers. As per a security package agreed upon during a merger, Vodafone Plc’s stake in Indus Towers was the primary pledge by its lenders against a loan taken in 2019.
Acquisition by Bharti Airtel
In a related development, Bharti Airtel acquired an additional 1% stake in Indus Towers in an all-cash block deal, increasing its stake in the telecom tower company to 48.95%.
Shares of Indus were down 2.81% at Rs 334.25 in afternoon trade on Wednesday, while Airtel shares were trading 1.4% lower at Rs 1408.90 on the exchange.
