Vodafone Plc plans to sell up to 9.9% stake in Indus Towers

19 Jun 2024 , 10:28 AM

Vodafone Group Plc, one of Vodafone Idea Ltd’s promoter firms, is expected to sell up to 9.94% of its stock in Indus Towers Ltd through block deals on Wednesday, according to persons familiar with the situation.

The block transaction has a price band of ₹310-341 per share, representing a 10% decrease from Tuesday’s closing price.

The transaction is estimated to be worth between ₹8,308 Crore and ₹9,138 Crore. At the end of the March quarter, Vodafone Plc held a 21.05% interest in Indus Towers.

Vodafone Plc will have a 90-day lock-in period for any further sale of said shares.

According to UBS, if a deal goes through, the proceeds will almost certainly be reinvested in Vodafone Idea.

Vodafone has hired advisors from Bank of America, Morgan Stanley, and BNP Paribas to help with the stake sale in Indian stock markets. The telecommunications company has earlier declared plans to sell its then-28% stake by 2022. However, just a portion has been divested thus far, with negotiations with other telecom providers reportedly deadlocked.

Vodafone intends to use the proceeds from the stake sale to pay down some of its $42.17 billion net debt. Indus Towers is a prominent tower infrastructure corporation with almost 220,000 towers and substantial stockholders, including Bharti Airtel.

The company specialises in the installation, ownership, and management of communication infrastructure including telecom towers for wireless operators. Indus Towers also supplies shelter and tower structures for base transceiver stations, as well as installation, repair, and maintenance services.

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