New Delhi: Telecom operator Bharti Airtel on Friday said it has signed a pact to buy Vodafone's 4.7 per cent stake in Indus Towers on the condition that the proceeds will be used for investment in VIL and clearing dues of the mobile tower company.
Debt-ridden Vodafone Idea (VIL) has been unable to pay dues of Indus Towers, and both VIL and promoter Vodafone have proposed a payment plan to clear the outstanding amount by July 15. In the meantime, VIL has committed to pay certain minimum amount each month to Indus Towers.
"Bharti Airtel has...entered into an agreement with Vodafone to buy 4.7% equity interest in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in VIL and simultaneously remitted to Indus Towers to clear VIL's outstanding dues," Airtel said in a statement.
Bharti Airtel said the purchase would be at an attractive price representing a significant discount typically available for such large block transactions.
"In addition, Airtel is also protected with a capped price which 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.