Bharti Airtel announced on Friday that it has agreed to buy a 4.7 percent stake in Indus Towers from Vodafone Group Plc in a block deal for cash.
“Bharti Airtel (“Airtel”) has entered into an agreement with Vodafone to purchase a 4.7 percent equity interest in Indus Towers on the principal condition that the amount paid to be inducted by Vodafone as fresh equity in Vodafone Idea (Vi) and remitted to Indus Towers to clear Vi’ outstanding dues,” the Sunil Mittal-led telco said in an official statement. Airtel’s stake in Indus will increase to 46.4 percent as a result of the purchase.
The Airtel-Vodafone deal was announced just one day after Vodafone Group Plc collected Rs 1,443 crore in a block sale on Thursday by selling a 2.4 percent share in Indus Towers to unnamed investors.
Airtel did not share the deal financials immediately, But the company said: “the acquisition purchase would be at an attractive price, representing a significant discount, typically available for such large block transactions”.
The agreement was disclosed after market hours, and Airtel shares closed 2.64 percent higher at Rs 688.45 on the BSE on Friday.
Airtel is also “protected with a capped price, which is lower than the price for the block of Indus shares sold by Vodafone on February 24, 2022,” according to the business.
It went on to say that the purchase would provide value to Airtel and protect its large stake in Indus Towers.
Vodafone announced on Wednesday that it was in talks to sell 4.7 percent of Indus to one of the company’s top shareholders. Bharti Airtel, according to those familiar with the situation, was this stakeholder. The UK firm has also stated that it is in talks to sell its remaining stake in the tower company to “many interested parties.”
Vodafone has stated that the funds raised from these equity sales will be reinvested in Vodafone Idea, which is currently losing money. In their capacity as co-promoters, the UK company and India’s Aditya Birla Group want to subscribe to an equity share offering by Vi.
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