I Squared Capital, Stonepeak eye Vodafone’s Indus Towers stake in $2.3 bn deal
NEW DELHI : Private equity (PE) firm I Squared Capital and alternative investment firm Stonepeak are vying for Vodafone Group Plc’s 21.5% stake in Indus Towers Ltd in a deal potentially valued at around $2.3 billion, according to two people aware of the development. The talks are in advance stages, the people said. On 14 June, Reuters reported that Vodafone Group was looking to sell its entire stake worth $2.3 billion, as of Friday's closing stock price in Mumbai, in India's largest telecom tower company through stock market deals and had hired Bank of America, Morgan Stanley and BNP Paribas to manage the sale.
“I Squared will not be able to comment on this story. However, if the firm has future news or announcements to share, we’ll be sure to be in touch," said an I Squared Capital spokesperson in an emailed response. Bank of America and BNP Paribas spokespersons declined to comment.
Queries emailed to the spokespersons of Indus Towers, Vodafone Group, Stonepeak, Morgan Stanley, and Bharti Airtel did not elicit a response until press time. While Vodafone Group Plc owns 21.5% through various entities in Indus Towers, which has over 219,736 towers covering all 22 telecom circles, Bharti Airtel Ltd is the largest shareholder with a 47.95% stake. The British telecom operator has pledged its stake in Indus Towers to settle the dues—estimated to be at around ₹10,000 crore—owed by its Indian arm Vodafone Idea to the mobile-tower operator.
It is unclear whether the proceeds from this sale would be used for repaying Indus Towers’ dues. Vodafone Idea, which is among the key customers for Indus Towers, raised ₹18,000 crore in India’s largest follow-on offer (FPO) in April. However, it cannot use the proceeds to pay up Indus
. Read more on livemint.com
