UK's Vodafone Group PLC to sell residual 3% stake in Indus Towers through block deal
Indus Towers through a block deal and fully exiting the Indian tower company, which is now a Bharti Airtel subsidiary.
“Vodafone Group Plc announces it has launched a placing of its remaining 79.2 million shares in Indus, and such shares, representing 3% of Indus' outstanding share capital through an accelerated book-build offering,” the British telco said in an official statement Wednesday.
Vodafone also intends to contribute the residual proceeds from the Placing towards an issue of new equity shares by Vi, once the terms of such a Capital Raise have been evaluated and decided on by Vi’s board. “The proceeds from the Capital Raise would be used by Vi to pay outstanding master service agreement (MSA) dues to Indus,” the British carrier said.
Following the repayment of Vodafone's outstanding borrowings, if any Indus Shares remain, such shares and any proceeds, which are not used by Vodafone to subscribe to new shares in Vi, would be available to Indus to guarantee Vi's obligations under the MSAs.
Under the terms of the security arrangements entered into between UK’s Vodafone and Indus, the Indian tower company has a security over the residual proceeds from the Placing to guarantee obligations from Vi under the Master Services Agreements, the British telco said.
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