Vodafone Plc plans to pare 3% stake in Indus Towers

5 Dec 2024 , 09:04 AM

Vodafone Group Plc, the British telecom giant, is selling its remaining 3% investment in Indus Towers, effectively departing India’s largest telecom tower operator, which is now a Bharti Airtel subsidiary.

The proceeds of the Placing will be used first to repay Vodafone’s outstanding borrowings of about US$101 million to existing lenders, which are secured by Vodafone’s Indian assets,” the company stated in a release.

Vodafone will clear its $101 million debt (about ₹856 Crore) and utilize the remaining cash to cover its Indian venture, Vodafone Idea’s outstanding dues.

As per the company, the transaction is worth approximately ₹2,841 Crore based on Wednesday’s closing price of Indus Towers stock at ₹358.75 per share on the BSE.

Following the transaction, Vodafone’s stake in Indus Towers will fall below one percent. Prior to this sale, Vodafone owned 82.5 million shares, or 3.1% of Indus Towers.

In mid-June, Vodafone offloaded an 18% interest in Indus Towers for approximately ₹15,300 Crore. Following the transaction, the telco held a 3.1% share in Indus Towers.

Indus Towers is India’s largest telecom tower provider, with approximately 219,736 towers across 22 telecom circles. Bharti Airtel holds a 48.95% stake, being the largest shareholder.

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