Bharti Airtel on Friday said it has entered into an arrangement with Vodafone Group to buy the latter’s 4.7% stake in Indus Towers on the condition that funds thus accrued should be pumped into Vodafone Idea (VIL) and simultaneously remitted to Indus to clear VIL’s outstanding dues.
Airtel said the acquisition would be at an attractive price representing a significant discount typically available for such large block transactions. Additionally, Airtel is protected with a capped price, which is lower than the price of the block of Indus shares sold by Vodafone on February 24.
Vodafone had sold 63.6 million primary shares in Indus, representing 2.4% of the latter’s outstanding share capital, at Rs 226.84 a share in a block deal. The UK-based group raised around Rs 1,443 crore through the sale.
Vodafone is looking to sell 127.1 million shares or 4.7% of Indus’ outstanding share capital to Bharti Airtel.
Bharti Airtel said any such acquisition shall only be done when such proceeds are confirmed to be utilised by Vodafone to infuse as equity into VIL, including any regulatory or shareholders’ approval being fully obtained.
“We believe this transaction allows Airtel to secure continued strong provision of services from Indus Towers, protects and enhances Airtel’s value in Indus Towers, enables it to receive rich dividends and as also paves the way for subsequent financial consolidation of Indus Towers in Airtel,” the statement added.
Airtel further said it remains committed to looking at opportunities for monetising this vital asset at an appropriate time. In doing so it will ensure that the tower company has been stabilised and any new strategic or financial investor/s has/have the ability to continue to serve the critical needs of Airtel.