Bharti Airtel has entered into an agreement with British telecom giant Vodafone Plc to buy 4.7% equity in telecom infrastructure company Indus Towers Ltd.
Vodafone’s 4.7 per cent stake in Indus Towers will be acquired only if it is to invest in Vodafone Idea and clear the dues of the tower company, the telecom operator said in a statement.
The company said, “Airtel has entered into an agreement with Vodafone on a condition that the amount paid shall be incorporated as fresh equity in Vodafone Idea Limited (VIL) and also Indus Towers to clear the dues of VIL.” will be dispatched.” regulatory filing.
The block deal will be executed through Euro Pacific Securities, a part of Vodafone Group, which holds a 7.59% stake in Indus Towers.
The statement said, “Airtel is also protected with a limited price that is lower than the block price of Indus shares sold by Vodafone on February 24, 2022. This will be a value addition to Airtel and its current significant stake in Indus Towers,” the statement said. will protect the stake.” said.
Currently, Vodafone holds around 28% stake in Indus Towers while Bharti Airtel holds close to 42%.
Indus Towers, formerly Bharti Infratel Limited, is a leading provider of passive telecommunications infrastructure. It deploys, owns and manages telecommunication towers and communication structures for various mobile operators.
The firm’s portfolio of over 1,84,748 telecom towers, makes it one of the largest tower infrastructure providers in the country with a presence in all 22 telecom circles. Indus Towers provides services to all wireless telecom service providers in India.
Indus Towers registers a growth of nearly 16% in consolidated profit 1,570.8 crore in the three months ended December 2021 while the revenue remained at 6,927 crore during the same period.
Indus Towers merged with Bharti Infratel in November 2020. The company’s total mobile tower base grew from 1,75,510 to 1,84,748 year-on-year.
It may be recalled that telecom service providers got a shot in the arm with the government last year approving a blockbuster relief package that gave companies a four-year break from paying statutory dues, sharing rare airwaves. Permission, change included. Definition of revenue on which levy is paid and 100% foreign investment through automatic route.
The Center also gave an option to telecom companies to convert the interest amount related to the moratorium period into equity.
Subsequently, the debt-ridden Vodafone Idea Limited opted to pay interest of approx. 16,000 crore through preference shares. This would result in the government holding a 35.8% stake in the firm.
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