Vodafone Idea: No proposal on Google stake sale, but evaluating opportunities

Vodafone Idea on Friday said that there is no proposal currently from tech major Google to acquire a stake in the telecom company and it is evaluating opportunities for enhancing the stakeholders’ value.

The company issued a clarification sought by the exchanges on a report that said Alphabet Inc’s Google is exploring to acquire 5 percent stake in the British telecom group’s struggling venture in India.

“As part of corporate strategy, the Company constantly evaluates various opportunities for enhancing the stakeholders’ value. Currently, there is no proposal as reported by the media that is being considered at the Board,” Vodafone said in a regulatory filing.

Earlier during the day, shares of Vodafone Idea jumped over 34 percent to hit the intraday high of Rs 7.85 per share on the BSE after the report surfaced.

The stock traded off-highs after the clarification. At 3 pm, shares of Vodafone Idea were trading percent 12.37 higher at Rs 6.54 on the BSE.

However, as per Credit Suisse, Google’s 5 percent investment, even if it materialises, won’t be adequate to solve the beleagured telco’s debt problems. The company needs sizeable infusion by promoters or acquisition of controlling stake by an outsider, it added.

The dues arose after the Supreme Court, in October last year, upheld the government’s position on including revenue from non-core businesses in calculating the annual AGR (Adjusted Gross Revenue) of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer.

—CNBC TV18