(Alliance News) - Vodafone Group PLC on Thursday said it will sell a further amount of shares in Indus Tower Ltd, a mobile phone tower joint venture in India to Bharti Airtel Ltd, which will reduce the group's holding to 21%.
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.
In February, Vodafone had launched a placing of 63.3 million Indus shares, a 2.4% stake, at INR226.84 each, generating net proceeds of INR14.2 billion, around USD189 million.
Now, the group will sell up to 127.1 million shares, a 4.7% stake, at a price that will be the lower of the placing price minus the broker fees associated with the placing, resulting in a price of INR224.58 each, totalling INR28.54 billion, around USD376.1 million.
Should the sale go through, Vodafone will retain 567.2 million shares, reflecting a 21% shareholding, down from 28.1% last month. The UK company remains in discussions with several interested parties for the sale of the remaining shareholding.
Shares in Indus Towers closed 2.3% higher at INR211.90 on Thursday in Bombay, It has a market cap of about INR570.64 billion, around USD7.52 billion, meaning Vodafone's remaining 21% stake is worth about USD1.58 billion.
Shares in Vodafone were down 1.1% at 128.42 pence on Thursday afternoon in London.
The money raise from the first two Indus share sales will go toward Vodafone's contribution to a planned capital raise by Indian mobile operator Vodafone Idea Ltd. Of the INR45 billion, about USD600 million, raise, Vodafone will contribute INR33.75 billion.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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