Vodafone UK selling Indus’ stakes to bolster balance sheet
Vodafone promoters show an encouraging sentiment to keep Vodafone’s balance sheet intact.
Vodafone UK selling Indus’ stakes. On Wednesday, Britain’s Vodafone PLC says that it will sell 28.1% of its share holdings in Indus Towers Ltd. Indus Towers Ltd., is India’s largest cell tower company. Further, Bharti Enterprises Ltd., which is also Bharti Airtel’s parent company, is the largest shareholder of Indus Towers Ltd.
Background on the decision: Vodafone UK selling Indus’ stakes
Vodafone in India is going through a rough patch. Especially, its local arm, Vodafone Idea is losing millions of its subscribers to its competitors like Reliance owned Jio and Bharti Airtel. Recently, Vodafone Idea alarmed Indian government as it ran into the chances of going bankrupt. Although, now the government owns 35.8% in stakes in the company.
Details of the sales of stakes:
On Friday, the company closes at nearly Rs 19,070 crore for 757.8 million shares.
- Vodafone has launched its initial sales of about 63.6 million Indus shares through a process of accelerated-book building offering.
- Further, on Thursday, Vodafone will sell 2.4% stakes through a block deal. The shares worth nearly $200 million.
- Moreover, the offer will be at 10% discount from the market price to stand at Rs 227-231 per share. They are expecting the total size of the offer, Rs 1,440 crore.
- Finally, Vodafone PLC adds that it is in the advance stage of talks with one of the Indus’ largest stakeholders to sell 4.7% of its stakes to them.
- However, Vodafone says that its in talk with many interested parties to sell their remaining shares in the Indus.
