Vodafone to sell 2.4% in Indus via block deal

Vodafone Group Plc said it is planning to sell 2.4% of its stake in Indus Towers via a block deal on Thursday and is also in talks with one of the tower company’s largest shareholders to sell 4.7% more.

“Vodafone announces that it has launched a placing of 63.6 million Primary Shares in Indus through an accelerated book build offering. This represents 2.4% of Indus' outstanding share capital,” the UK telecom major said in a stock exchange filing on Wednesday.

Vodafone said it is also in advanced discussions with one of the largest shareholders in Indus for the purchase of up to 127.1 million Indus shares, or a 4.7% stake.

“The terms of such an agreement are currently being discussed and there can be no certainty that the sale will proceed. Should the sale be completed, Vodafone would retain 567.2 million shares in Indus, or a 21.0% shareholding,” the company added.

Promoters of Indus Towers, Bharti Airtel and UK’s Vodafone Group, currently hold 41.73% and 28.12% share in the company, respectively.

In addition, Vodafone said it is also in discussions with several interested parties to sell its balance 21% stake in Indus as well.

Vodafone Group and the Aditya Birla Group (ABG) own 44.39% and 27.66%, respectively in Vodafone Idea as its co-promoters.

“Vodafone and the Aditya Birla Group, the promoters of Vodafone Idea Limited, are committed to support Vi in its efforts to strengthen its balance sheet… Vodafone and ABG intend to contribute towards an issue of equity shares by Vi once the terms of such a Capital Raise have been evaluated and decided on by the Board of Directors of Vi,” the British major said.

Vodafone and Indus have modified the security arrangements in order to allow UK company to dispose of the pledged primary shares and use the proceeds to participate in an issue of new shares by Vi.

“The modified terms will continue to provide security to Indus for an equivalent amount of payments by Vi under the Master Services Agreements. Any residual proceeds from the sale of the primary shares that are not used by Vodafone to subscribe for new shares in Vi will be available to Indus until November 19, 2022 to guarantee Vi's obligations under the Master Services Agreements,” the company said.