British telecom giant Vodafone Group has announced plans to divest its remaining three per cent stake in Indus Towers, an Indian telecom infrastructure company. The sale, comprising 79.2 million shares, will be conducted through an accelerated book build offering, the company revealed on Wednesday.
Proceeds to Address Outstanding Debt
This move is part of Vodafone’s broader strategy to exit its Indian investments, streamline operations, and strengthen its financial position. The company plans to use the proceeds primarily to repay $101 million in outstanding borrowings secured against its Indian assets.
The announcement follows Vodafone’s earlier sale of an 18 per cent stake in Indus Towers in June 2023, which raised $1.82 billion. This larger-than-planned transaction helped the company significantly reduce its debt and marked a strategic shift away from its non-core markets.
Indus Towers operates one of India’s largest telecom infrastructure networks, which are crucial for mobile and data services.
Strategic Portfolio Optimisation
Selling its remaining stake aligns with Vodafone’s focus on optimising its portfolio and prioritising markets where it has a stronger presence. The FTSE 100-listed company is also grappling with significant debt and the need to invest in next-generation technologies like 5G.
The sale signals Vodafone’s commitment to debt reduction and financial resilience while marking the conclusion of its Indian telecom journey. Upon completing this transaction, Vodafone will have no direct involvement in India’s telecom infrastructure sector.
(With Reuters inputs)