With this, Vodafone will raise Rs 3,831 crore by selling a 7.1% stake in India’s largest telecom tower company. The money will then be channeled into its cash-strapped Indian joint venture, Vodafone Idea (VI), which is doing its best to raise funds to spin up its operations and better compete in the market.
According to an agreement between Euro Pacific Securities Limited, and certain affiliates of the Vodafone Group, including Airtel and its arm Natal Infrastructure, the deal will be “executed at ₹187.88 per share based on the price formula agreed in the agreement, aggregating to ₹23,880.62.” Will happen. Million, upon fulfilling all the conditions “as agreed earlier,” the Sunil Mittal-led carrier said in a statement. Airtel currently holds 41.7% stake in Indus.
Shares of Tower Company closed 4.9% lower at ₹203.25 on BSE on Friday. Airtel’s stock closed 0.4% higher at ₹709.25, while Vi ended 0.6% lower at ₹10.11.
On February 25, Airtel said it has agreed to buy a 4.7% stake in Indus Towers from Vodafone for cash. Under the deal, the UK company is supposed to invest the proceeds in Vodafone Idea, which in turn should use the money to clear its payment dues to the telecom tower company. The stock of Indus closed at Rs 214.20, up 4.11% on that day.
A few days before the February 25 announcement, Vodafone sold 2.4% in Indus through a block deal to undisclosed investors for ₹1,443 crore, or ₹226.84 per share.
At the time, Airtel did not share the financial terms of its stake purchase, but said the purchase would be “at an attractive price, representing a significant discount, typically available for such large block transactions”. It added that the carrier was also protected with a capped price that was less than the price of a block of Indus shares sold by Vodafone.
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