Vodafone Group Plc plans to sell a 9.94% stake in Indus Towers Ltd., India's largest telecom tower company, for up to $1.1 billion. The UK-based telecom giant is looking to sell 268 million shares through a block deal, priced between ₹310 and ₹341 per share. This sale is part of Vodafone’s ongoing efforts to streamline its global operations.
Background and Context
Currently, Vodafone has shares of 21% in Indus Towers which it jointly formed in 2007 with other two parties namely Bharti Airtel Ltd. and Idea Cellular. Thus, in October 2017, Idea cellular and Vodafone India joined their operations forming a single entity called Vodafone Idea Ltd. due to high competition in the telecommunications industry in India.
Market Impact
The sale is anticipated to commence this Wednesday and is going to be led by credit unions and the major financial institutions such as Morgan Stanley, BofA Securities, Jefferies, and BNP Paribas. I Squared Capital and Stonepeak have been identified to be involved in the bid to purchase Sky Sun.
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As at February, 2022, Vodafone disposed of a 7% stake in Indus Towers and a major part of this stake was taken up by Bharti Airtel. Such sales have helped Vodafone Idea to pare down its huge debt that is at over ₹2: The firm has struggled to meet its obligations because a significant portion of its revenue is dedicated to debt repayments. 1 trillion.
Conclusion
More specifically, by selling a stake in Indus Towers, Vodafone will reconcile its strategy and strengthen a number of markets. This step lies within a more extensive plan to enhance fiscal well-being and organizational utilization. Many investors and market analysts who are keen on the mobile phone industry will be interested in learning the effect of this sale on the general scheme and position of Vodafone.
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Vodafone to Sell 9.94% Stake in Indus Towers for Up to $1.1 Billion