Airtel to accumulate Vodafone’s 4.7% stake in Indus Towers if funds are used for VIL

Telecom operator Bharti Airtel on Friday stated it has signed an settlement to purchase Vodafone’s 4.7 per cent stake in Indus Towers on the situation that the proceeds will likely be used for funding in Vodafone Idea and clearing dues of the cellular tower firm.

Debt-ridden Vodafone Idea (VIL) has been unable to pay dues of Indus Towers, and each VIL and promoter Vodafone have proposed a fee plan to clear the excellent quantity by July 15.

In the meantime, VIL has dedicated to pay sure minimal quantity every month to Indus Towers.

“Bharti 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 Limited (VIL) and simultaneously remitted to Indus Towers to clear VIL’s outstanding dues,” Airtel stated in a press release.

The Sunil Mittal-led agency stated the acquisition can be at a pretty value representing a major low cost usually out there for such massive block transactions.

“In addition, Airtel can also be protected with a capped value which is decrease than the value for the block of Indus shares offered by Vodafone on February 24, 2022. This shall be worth accretive to Airtel and shield its present vital shareholding in Indus Towers.

“Any such acquisition shall only be done when such proceeds are confirmed to be utilised by Vodafone to infuse as equity into VIL including any regulatory or shareholders’ approval being fully obtained,” Airtel stated.