Vodafone Group Plc to place 63.6 million primary shares in Indus Towers

Vodafone Group Plc of the UK has launched the placing of 63.6 million primary shares in Indus Towers Ltd through an accelerated book build offering. This represents 2.4 per cent of Indus’ outstanding share capital.

Vodafone said it is also in advanced discussions with one of the largest shareholders in Indus for the purchase of up to 127.1m Indus shares from Vodafone, or 4.7 per cent of Indus’ outstanding share capital, which represents the remaining balance of primary shares. The terms of such an agreement are currently being discussed and there can be no certainty that the sale will proceed. “Should the sale be completed, Vodafone would retain 567.2 million shares in Indus, or a 21.0 per cent shareholding,” it said in a filing on the London Stock Exchange.

Vodafone Group Plc holds 757.8 million shares in Indus Towers, equivalent to a 28.1 per cent shareholding. “190.7 million of these shares, equivalent to a 7.1 per cent shareholding, are currently pledged to Indus as part of the security arrangements entered into between Vodafone and Indus at the time of the merger of Indus Towers with Bharti Infratel,” it said.

In addition, Vodafone is also in discussions with several interested parties in relation to a potential sale of the residual shareholding. A further announcement will be made as soon as practicable if any further agreements are reached, Vodafone said.

“Vodafone and the Aditya Birla Group, the promoters of Vodafone Idea Ltd, are committed to support Vi in its efforts to strengthen its balance sheet. The first step in this process included the conversion of $ 2.1bn of AGR and spectrum interest into equity, which will make the Indian government the largest shareholder of Vi,” Vodafone said.

“Vodafone and ABG intend to contribute towards an issue of equity shares by Vi once the terms of such a Capital Raise have been evaluated and decided on by the board of directors of Vi,” it said.

Vodafone and Indus have modified the security arrangements in order to allow Vodafone to dispose of the pledged primary shares and use the proceeds to participate in an issue of new shares by Vi. The modified 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 primary shares that are not used by Vodafone to subscribe for new shares in Vi will be available to Indus until November 19, 2022 to guarantee Vi’s obligations under the Master Services Agreements,” it said. IndianExpress