UK’s Vodafone Group Plc has launched a placement of 63.6 million primary shares in Indus Towers Ltd through an accelerated bookbuilding offering. This represents 2.4% of the outstanding share capital of Indus.
Vodafone said it was also in advanced discussions with one of Indus’ major shareholders for the purchase of up to 127.1 million Indus shares from Vodafone, or 4.7% of the share capital in circulation of Indus, which represents the remaining balance of the main shares. The terms of such an agreement are currently being discussed and there is no certainty that the sale will take place. “If the sale were to be completed, Vodafone would retain 567.2 million shares of Indus, representing a 21.0% stake,” he said in a document filed with the London Stock Exchange.
Vodafone Group Plc owns 757.8 million shares in Indus Towers, equivalent to a 28.1% stake. “190.7 million of these shares, equivalent to a 7.1% stake, are currently pledged to Indus under the security agreements entered into between Vodafone and Indus at the time of the merger of Indus Towers with Bharti Infratel,” he said.
Additionally, Vodafone is also in talks with several interested parties regarding a possible sale of the remaining stake. A further announcement will be made as soon as possible if further agreements are reached, Vodafone said.
“Vodafone and Aditya Birla Group, promoters of Vodafone Idea Ltd, are committed to supporting Vi in its efforts to strengthen its balance sheet. The first step in this process included the conversion of $2.1 billion of AGR and spectrum interests into shares, which will make the Indian government Vi’s largest shareholder,” Vodafone said.
“Vodafone and ABG intend to contribute to a share issue by Vi once the terms of such a capital increase have been assessed and decided by Vi’s board of directors,” he said. declared.
Vodafone and Indus have amended security agreements to allow Vodafone to dispose of the pledged principal shares and use the proceeds to participate in an issue of new shares by Vi. The amended terms will continue to provide security to Indus for an equivalent amount of payments by Vi under the Master Services Agreements. “Any residual proceeds from the sale of the main shares which are not used by Vodafone to subscribe for new shares in Vi will be available to Indus until November 19, 2022 to secure Vi’s obligations under the Master Services Agreements” , did he declare.