Bharti Airtel said it has signed an agreement to buy Vodafone’s 4.7% stake in Indus Towers on the condition that the proceeds will be used for investment in Vodafone Idea and clearing its dues towards the mobile tower company. The deal is expected to be in the range of £300 million, industry sources said, though the companies refused to confirm.
Debt-ridden Vodafone Idea (Vi) has been unable to pay dues to Indus Towers and both Vi and promoter Vodafone have proposed a payment plan to clear the outstanding amount by July 15.
In the meantime, Vi has committed to pay certain minimum amount each month to Indus Towers.
Vodafone through its group firm Euro Pacific Securities has sold nearly 2.4% stake in Indus Towers in a bulk deal at an average price of around Rs 227 per share to an undisclosed buyer for about £ 144.2 million.
Airtel said the acquisition of stake would be at an attractive price, representing a significant discount typically available for such large block transactions. “In addition, Airtel 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. This shall be value accretive to Airtel and protect its existing significant shareholding in Indus Towers. Currently, Vodafone holds about 28% stake in Indus Towers, while that of Bharti Airtel is close to 42%.
