India Business Journal - Vodafone mulls selling its entire $2.3-billion stake in Indus Towers via block deals

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Vodafone mulls selling its entire $2.3-billion stake in Indus Towers via block deals

IBJ Bureau
Jun 15, 2024

The Vodafone Group is looking to sell its entire $2.3-billion stake in Indus Towers through stock market block deals next week, two sources with direct knowledge said on Friday, as a part of the British company’s effort to repay debt.

Vodafone owns 21.5 per cent of mobile tower operator Indus via various group entities. As of Friday’s closing stock price in Mumbai, the investment is worth $2.3 billion.

The final size of the stake sale is yet to be decided and could be lower than 21.5 per cent if demand, which is still being assessed, is insufficient, said the sources, who declined to be named as the discussions were private.

Shares of Vodafone Idea extended gains, rising as much as 4.8 per cent after the Reuters report, while Indus Towers pared gains and closed up by 0.3 per cent.

Vodafone India and its British parent did not respond to requests for comment. Indus Towers declined to comment.

Vodafone has hired Bank of America, Morgan Stanley and BNP Paribas to manage the stake sale in Indian stock markets, the sources said.

Bank of America declined to comment while the others did not respond to the Reuters’ requests for comment.

Vodafone in 2022 had announced that it would sell its then-28 per cent stake but has managed to sell only a small portion so far. The sources said the talks with rival telecom firms for a stake sale had not materialised.