(Alliance News) - Vodafone Group PLC on Wednesday announced a series of transactions that could result in the sale of its entire remaining stake in Indus Tower Ltd, a mobile phone tower joint venture in India.
The Newbury, Berkshire-based telecommunications provider has steadily reduced its holdings of mobile phone mast assets. Last March, it spun off Germany-based Vantage Towers AG as a separately listed company in Frankfurt.
Vodafone has a 28.1% stake in Indus Towers, following a merger of the business with Bharti Infratel Ltd back in 2020. It said it has launched a placing of 63.6 million Indus shares, a 2.4% stake, via an accelerated bookbuild.
Additionally, Vodafone said it is in "advanced discussions with one of the largest shareholders in Indus" to sell up to another 127.1 million share, or a 4.7% stake.
Vodafone then would retain 567.2 million, a 21% holding. For this residual holding, it is in discussions with "several interested parties".
Indus Towers closed down 0.4% at INR251.20 in Bombay on Wednesday. It has a market cap of about INR678 billion, about USD9 billion, so Vodafone's current 28% stake is worth about USD2.6 billion.
Vodafone shares up 0.2% at 136.64 pence in London on Wednesday afternoon. Vodafone itself has a USD50 billion market cap.
The UK company said it would use the proceeds from the sale of the first two sets of Indus shares, totalling a 7.1% stake, to participate in an equity raise by Indian mobile operator Vodafone Idea Ltd. The equity raise by Vi is to strengthen its balance sheet, with the funding operation also seeing the Indian government become Vi's largest shareholder.
Vi shares closed down 1.6% in Bombay on Wednesday at INR10.72. It has a INR323 billion market cap.
By Tom Waite; thomaslwaite@alliancenews.com
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