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Informist, Wednesday, Dec. 4, 2024

 

--Vodafone Plc to sell 3% stake in Indus Towers

 

MUMBAI – Indus Towers Ltd. has released a pledge on 3.003% shares held by Vodafone Plc in the company Wednesday, it said in an exchange filing. Vodafone Plc, which will be effectively exiting its shareholding in Indus Towers, will use the proceeds from the private placement of these 79.2 million shares to repay outstanding borrowings of $101 million to existing lenders. A portion of the funds will also be used subsequently by Vodafone Idea Ltd. to clear its outstanding dues to Indus Towers.

 

Vodafone Group will use the proceeds from the private placement to first repay its outstanding dues for its Indian assets. Indus Towers has a security over residual proceeds from the stake sale. Any residual proceeds will be used to purchase equity in a fresh issue of shares by Vodafone Idea, which will then use the funds to clear outstanding dues to Indus Towers.

 

If any shares of Indus Towers remain after the Vodafone Group's dues are cleared, these would be available to Indus Towers to guarantee Vodafone Idea's obligations under the Master Services Agreement.

 

Based on an agreement signed in September 2020, a security package could be invoked if Vodafone Idea were to be unable to satisfy certain payment obligations under its Master Services Agreement. Based on these terms and conditions, the telecom infrastructure company Wednesday released the pledge on the remaining 3.003% shares held by the promoters of Vodafone Group. The UK-based company previously sold its 18% stake in Indus Towers on Jun. 19, leaving it a 3.1% stake in the company.

 

In the September quarter, Indus Towers had reported a consolidated net profit of INR 22.24 billion on a revenue of INR 74.65 billion. On Wednesday, shares of Indus Towers closed at INR 357.20 on the National Stock Exchange, up 0.9%. Vodafone Idea closed 2.6% higher at INR 8.42.  End

 

US$1 = INR 84.74

 

Reported by Anand JC

Edited by Rajeev Pai

 

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