Vodafone to Sell $2.3 Billion Stake in Indus Towers in India, According to Report

The final size of the stake sale by Vodafone, which owns 21.5% of mobile-tower operator Indus via various group entities, is yet to be decided. Currently, the investment is worth $2.3 billion based on Friday’s closing stock price in Mumbai. However, the actual size of the stake sale could be lower than 21.5% if the demand is insufficient, as it is still being assessed by unnamed sources familiar with the matter.

Following the Reuters report, shares of Vodafone Idea saw an increase of as much as 4.8%, while Indus Towers experienced a more modest gain of 0.3%. Both Vodafone India and its British parent declined to comment, and Indus Towers also refrained from making a statement on the matter. Vodafone has enlisted the assistance of Bank of America, Morgan Stanley, and BNP Paribas to manage the stake sale in Indian stock markets.

Although Bank of America declined to comment, the other two banks did not respond to Reuters’ requests for comment. Furthermore, while Vodafone had previously announced its intention to sell its entire 28% stake in 2022, it has only managed to sell a small portion thus far. Additionally, talks with rival telecom firms for a stake sale did not materialize.

The proceeds from the Indus stake sale are intended to be used by Vodafone to partially repay its $42.17 billion net debt, as per the sources. Indus Towers, one of the world’s largest tower companies, also has Bharti Airtel as a shareholder and has nearly 220,000 towers. The company’s services include providing power, space, and green technology for tower equipment.

Notably, both KKR and Canadian fund CPPIB were previous investors in Indus but sold their entire stakes in February. Block deals, where investors sell shares in stock markets, have surged in popularity in India as the market reached record highs. In a similar move in March, British American Tobacco sold its entire $2 billion stake in Indian tobacco firm ITC.

Indus Towers reported a 20% increase in net profit to $221 million for the quarter ending March 2024, while its revenue remained at $860 million, based on regulatory filings. *(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed. )*