Bharti Airtel, India’s second-largest telecom operator is looking to get a 4.7% stake in Indus Towers from Vodafone UK’s share to help India’s Vodafone Idea (Vi). The telco said that it has entered into a strategic agreement with Vodafone UK to buy 4.7% equity interest in Indus Towers. Airtel has however put a principal condition that the amount it pays shall be used by Vodafone UK to be infused as fresh equity in Vodafone Idea Limited (VIL). Further, Airtel has asked Vodafone UK to clear VIL’s outstanding dues with the said payment.
Airtel Supports Three Private Player Market, Says Will Get Shares at Attractive Price
Bharti Airtel issued a statement saying it supports the government’s desire to have three private player market which is also in the best interest of Indus Towers. However, this is not charity for Airtel. The telco would be getting the shares of Indus Towers from Vodafone UK at an attractive price with a significant discount which is typically available for such large block transactions. The acquisition will only take place by Bharti Airtel when the confirmation from Vodafone UK arrives that it will use the proceeds from the stake sale to infuse in Vodafone Idea Limited (VIL) as fresh equity. Indus Towers is also a profitable buy for Bharti Airtel. In helping Vodafone Idea, Airtel is also helping Indus Towers which is expected to do more business as the 5G rollout takes place. This will enable Airtel in earning rich dividends from the biggest mobile tower company in India. Bharti Airtel already has a significant stake in Indus Towers and if this acquisition goes through, the telco’s position would further solidify. The response from Vodafone Group UK should come positive for these demands as the British telecom giant was only looking to sell a stake to Airtel for helping Vi. Vodafone Idea Limited (VIL) will be able to get some fresh equity at last if the deal goes through.
