UK’s Vodafone Group Plc (Vodafone) introduced on Wednesday, December 4, that it plans to promote its remaining 3 % stake in Indus Towers. In an announcement, the corporate stated it has launched a putting of its remaining 79.2 million shares in Indus Towers Restricted (Indus), representing 3 % of Indus’s complete share capital, by means of an accelerated book-building providing. This divestment of shares marks Vodafone’s full exit from the telecom infrastructure firm, Indus.
Additionally Learn: Vodafone Executives Step Down from Indus Towers Board After Bharti Airtel’s Majority Possession
Proceeds to Repay Vodafone’s Borrowings
Vodafone Group acknowledged that the proceeds from the putting will first be used to repay Vodafone’s excellent borrowings of roughly USD 101 million to its current lenders, secured in opposition to its Indian belongings.
This transfer follows the resignation of executives from the UK’s Vodafone Group PLC, who served as non-executive administrators on the board of Indus Towers, after Bharti Airtel elevated its stake to over 50 % within the tower firm. Following the buyback train, Airtel’s shareholding in Indus Towers—a three way partnership firm—rose to roughly 50.005 %, making Indus Towers a subsidiary of Bharti Airtel.
Indus Towers’ Association with Vodafone
Beneath the phrases of the safety preparations between Vodafone and Indus, Indus has safety over the residual proceeds from the putting to ensure obligations from Vodafone Thought Restricted (Vi) to Indus beneath the Grasp Providers Agreements (MSAs).
Vodafone plans to allocate the residual proceeds, after repaying the borrowings, in direction of a possible capital elevate by Vi, as soon as its board evaluates the phrases. The funds from this capital elevate will assist Vi settle its MSA dues to Indus.
Following the compensation of Vodafone’s excellent borrowings, if any Indus shares stay, these shares and any proceeds not utilized by Vodafone to subscribe to new shares in Vi can be accessible to Indus to ensure Vi’s obligations beneath the MSAs. Vodafone acknowledged {that a} additional announcement will likely be made if mandatory.
Additionally Learn: Bharti Airtel Will get CCI Approval to Increase Indus Tower Stake Over 50 %
Vodafone’s Phased Exit from Indus Towers
The sale completes Vodafone’s phased divestment in Indus Towers. In June 2024, Vodafone bought an 18 % stake in Indus Towers for Rs 15,300 crore, lowering its holding to three %.
