Bharti Airtel Friday said it has entered into an agreement to attain a 4.7% stake in Indus Towers from UK’s Vodafone Group Plc in cash via a block deal.
“Bharti Airtel (“Airtel”) has entered into an agreement with Vodafone to buy 4.7% equity interest in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea (Vi) and all together remitted to Indus Towers to clear Vi’ outstanding dues,” the Suni Mittal led telco said in an official statement.
The deal will increase Airtel’s stake in Indus to 46.4%.
The Airtel-Vodafone deal declaration came just a day after Vodafone Group Plc raised around Rs
1,443 crore by selling a 2.4% stake in Indus Towers through a block deal to unnamed investors on Thursday.
Airtel did not share the deal financials immediately, But the corporation said “the acquisition purchase would be at an attractive price, representing a significant discount, typically available for such large block transactions”
Airtel shares closed 2.64% higher at Rs 688.45 on BSE on Friday, the deal was declared after market hours.
Airtel, said is also “protected with a capped price, which is lower than the price for the block of Indus shares sold by Vodafone on February 24, 2022”.
It added that the deal would be value accretive to Airtel and protect its existing shareholding in Indus Towers.
On Wednesday, UK’s Vodafone had said it was in talks with one of Indus’ largest shareholders to sell 4.7%. People aware of the matter had told ET that Bharti Airtel was this shareholder. The UK company has also said it was in talks with “several interested parties” to sell its balance stake in the tower company.
Vodafone has said the cash it raises via these stake sales would be infused in loss-making Vodafone Idea. The UK firm and India’s Aditya Birla Group wish to subscribe to an issue of equity shares by Vi in their capacity as co-promoters.