Vodafone Idea in advanced negotiations to sell fibre assets; expects up to Rs 12,000 crore

18 Dec 2023 , 11:04 AM

According to persons familiar with the situation, Vodafone Idea (Vi) is in advanced talks with private equity firms to sell its fibre assets and In-Building Solution (IBS) to generate Rs 10,000- Rs 12,000 crore.

According to one of the sources, the business is in advanced stage talks with a few private equity firms about selling the fibre assets and then leasing back the infrastructure on a long-term basis.

The valuation for fibre assets was in the region of Rs 10,000 crore to Rs 11,500 crore, while the valuation for IBS, which is used to offer connection within buildings, might be about Rs 500 crore.

While negotiations for equity investment with a US-based digital infrastructure business were approaching completion, the transaction fell through when a possible investor pulled out at the last minute, according to persons familiar with the situation.

There may be a few months of delay in seeking new equity capital because the company is now investigating opportunities with other financial organizations in the United States.

In 2019, India’s first loss-making private telecom attempted to sell its fibre assets and data centre operations, but the deal fell through owing to valuation disagreements. In September 2021, the government unveiled a relief plan for the telecom sector, bringing much-needed respite to the ailing operator.

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