New Delhi: UK’s telecom major Vodafone is in talks to sell 5 per cent stake in Indus Towers to Bharti Airtel, quoting sources, the PTI reported on Wednesday.
When contacted, Vodafone refused to comment on the matter. Vodafone currently holds about 28 per cent in Indus Towers, India’s largest cell tower company.
According to industry sources, Vodafone is in talks to sell its about 5 per cent stake in Indus Towers, valued at over Rs 3,300 crore, to Bharti Airtel. The proceeds will be pumped into the Indian entity Vodafone Idea, the sources added.
Indus Towers Limited, formerly Bharti Infratel Limited, provides passive telecom infrastructure. It deploys, owns and manages telecom towers and communication structures for various mobile operators. The company's portfolio of over 1,84,748 telecom towers makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles. Indus Towers caters to all wireless telecommunication service providers in India.
Initially, Vodafone has launched a sale of 6.36 crore Indus shares through an accelerated book building offering and said it was in talks with various parties regarding the sale of its remaining shares.
According to Reuters, the company’s total stake of 75.78 crore shares was worth roughly Rs 19,070 crore as of Friday close, according to Reuters calculations.
A news channel reported that Vodafone PLC on Thursday will sell 2.4 per cent stake in company worth $200 million through block deal.
The development comes after a challenging period for Vodafone in India, where its local arm, Vodafone Idea, has faced intense competition and lost millions of wireless subscribers to Reliance's Jio and Bharti Airtel.
Vodafone Idea’s troubles have been compounded by huge dues owed to the Indian government, which is expected to own a 35.8 per cent stake in the venture through a recent deal.