Vodafone is Going to Sell its Entire 21.5% Stocks in Indus Tower, Via Block Deals
Vodafone is selling its 21.5% stake in Indus Tower, although neither Vodafone nor its UK parent companies have given any immediate statement on this. But sources say that, "The final size of the stake sale is yet to be decided...... still being assessed, is insufficient,"
Vodafone is Going to Sell its Entire 21.5% Stocks in Indus Tower, Via Block Deals
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British Giant Vodafone is in the effort to Reduce Excess Debt
According to two insider sources and multiple reports, British Multinational Firm Vodafone is taking such a big step to reduce its debt. According to Reuters report, Vodafone has hired 3 big multinational banks to manage this big strategic deal, which include Bank of America, Morgan Stanley and Banque Nationale de Paris (BNP) Paribas.
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Vodafone may sell $2.3 billion worth of stocks via block deal
According to the closing prices of Indus Tower at the Mumbai Stock Exchange on Friday, the worth of 21.5% of Indus stocks stood at $2.3 billion — Keeping in mind Friday's Indus Tower prices, we can say that Vodafone will sell stocks worth $2.3 Billion.
While this big deal is making headlines in the market, on the other hand Vodafone and its UK parent company have not given any immediate response on this news.
So far Vodafone has not given any definite size of Indus Company's stock sale. But on the other hand there is also a possibility that if the market demand is not as per the expectations then the stock sale can be less than 21.5%.
"The final size of the stake sale is yet to be decided and could be lower than 21.5% if demand, which is still being assessed, is insufficient,"
As Claimed by Individual with direct knowledge of the matter, Sources with direct knowledge of the matter made this claim. Souces requested to keep his name secret due to the private nature of the discussion.
Is Vodafone fulfilling its Declaration made in 2022 or Something Else ?
It is not that this is happening in the first time when Vodafone talked about selling the stocks of Indus Tower, rather something similar was announced in the first year 2022. In 2022, Vodafone announced the sale of 28% of Indus Tower stocks, although at that time the company was successful in selling only a small part of this announcement. But the current deal indicates that Vodafone is now on the way to fulfilling its declaration made in 2022.
Notably, On April 24, Bharti Airtel clarified that it was not in discussions to buy Vodafone Group's 21.05% stake in Indus Towers, even as reports were rife about it earlier. Bharti Airtel, led by Indian billionaire Sunil Mittal, already holds the biggest stake in Indus Towers at 47.95%. The Company in April noted in its clarification,
"Indus is a provider of critical infrastructure services to the telecom industry and Airtel relies heavily on it. Airtel will therefore always ensure that Indus remains in robust health and financially stable,"
Indian Multi-billion Telecommunication Company Indus Tower
Indian Based Multinational Company Indus tower is one of the largest telecom economy in the world. As of 31 March 2024, Indus Tower has 2,19,736 towers worldwide and Indus Tower provides network coverage in 22 telecom circles across India. Headquarter of Indus Tower is in Gurugram, Haryana. It was established in 2007 by a joint venture between Bharti Airtel, Vodafone, Vodafone Essar and Idea Cellular.
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