Airtel enters into agreement with Vodafone for stake acquisition in Indus Towers

Airtel has entered into an agreement with the Vodafone Group to buy 4.7 per cent equity interest in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vi and simultaneously remitted to Indus Towers to clear Vi’s outstanding dues. The said acquisition purchase would be at an attractive price representing a significant discount typically available for such large block transactions. In addition, Airtel is protected with a capped price that is lower than the price for the block of Indus shares sold by Vodafone on February 24, 2022. This shall be value accretive to Airtel and protect its existing significant shareholding in Indus Towers. Any such acquisition will only be done when such proceeds will be utilised by Vodafone to infuse equity into Vi, and regulatory or shareholders’ approval is fully obtained. Airtel believes that this tran­saction allows it to secure continued strong provision of services from Indus Towers, protects and enhances its value in Indus Towers, enables it to receive rich dividends and also paves the way for subsequent financial consolidation of Indus Towers in Airtel.

GET ACCESS TO OUR ARTICLES

Enter your email address