Bharti Airtel has entered into an settlement with British telecom big Vodafone Plc to purchase 4.7% fairness in telecom infrastructure firm Indus Towers Ltd.
The acquisition of 4.7% Vodafone stake in Indus Towers solely whether it is for infusion in Vodafone Concept and clearing tower firm’s dues, the telecom operator mentioned in an announcement.
“Airtel has accordingly entered into an settlement with Vodafone on one situation that the quantity paid shall be inducted by Vodafone as recent fairness in Vodafone Concept Restricted (VIL) and concurrently remitted to Indus Towers to clear VIL’s excellent dues,” the corporate mentioned in a regulatory submitting.
The block deal could be executed by Euro Pacific Securities, a Vodafone group entity that holds 7.59% stake in Indus Towers.
“Airtel can also be protected with a capped value which is decrease than the value for the block of Indus shares offered by Vodafone on February 24, 2022. This shall be worth accretive to Airtel and defend its present important shareholding in Indus Towers,” the assertion mentioned.
At the moment, Vodafone holds about 28% in Indus Towers whereas that of Bharti Airtel is near 42%.
Indus Towers, previously Bharti Infratel Ltd, is a number one supplier of passive telecom infrastructure. It deploys, owns and manages telecom towers and communication constructions for varied cell operators.
The agency’s portfolio of over 1,84,748 telecom towers, makes it one of many largest tower infrastructure suppliers within the nation with presence in all 22 telecom circles. Indus Towers caters to all wi-fi telecommunication service suppliers in India.
Indus Towers posted about 16% rise in consolidated revenue at ₹1,570.8 crore within the three months ended December 2021 whereas revenues stood at ₹6,927 crore throughout the identical interval.
Indus Tower merged with Bharti Infratel in November 2020. The corporate’s whole cell tower base elevated to 1,84,748 from 1,75,510 on a year-on-year foundation.
It might be recalled that the telecom service suppliers bought a shot within the arm with the federal government, final 12 months, approving a blockbuster reduction package deal that included a four-year break for firms from paying statutory dues, permission to share scarce airwaves, change within the definition of income on which levies are paid and 100% international funding by the automated route.
The Centre additionally gave telcos the choice to transform the curiosity quantity pertaining to the moratorium interval into fairness.
Subsequently, debt-ridden Vodafone Concept Ltd opted to pay curiosity of round ₹16,000 crore by preferential shares. It will end result within the authorities holding 35.8% stake within the agency.
Supply: Live Mint