US wireless carrier Verizon Communications Inc and Amazon.com Inc may invest more than $4 billion for a stake in beleaguered Indian telecom firm Vodafone Idea Ltd, India's Mint newspaper reported on Thursday, citing two unnamed people aware of the negotiations.
US wireless carrier Verizon Communications Inc and Amazon.com Inc may invest more than $4 billion for a stake in beleaguered Indian telecom firm Vodafone Idea Ltd, India's Mint newspaper reported on Thursday, citing two unnamed people aware of the negotiations.
The stake-sale talks were paused because the outcome of a Supreme Court case on staggered payments of government dues was uncertain and could have threatened the survival of Vodafone Idea, the people said seeking anonymity.
Tuesday’s decision by the top court to give telcos 10 years to pay a total of Rs 1.4 trillion in dues paves the way for a resumption of the negotiations.
The fundraising is crucial for cash-strapped Vodafone Idea to pay government dues and invest in upgrading its network, a process that was halted for lack of funds.
Of the combined dues of all telcos, Vodafone Idea alone needs to pay around Rs 50,400 crore more to the government in licence fee, spectrum usage charges, interest and penalties. It has already paid Rs 7,854 crore.
The company reported a staggering loss of Rs 25,460 crore in the June quarter due to one-time charges, including provisions to cover payments due to the government.