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Vodafone Plans Indus Towers Stake Sale via Block Sale for USD 1.1 billion

Vodafone PLC is preparing to divest a 9.94% stake in Indus Towers through block deals scheduled for June 19.

The sale aims to raise between $996 million to $1.1 billion, with shares priced at a 10% discount from their current market value, as per the term sheet accessed by Moneycontrol.

The block deal involves 26.8 crore shares of Indus Towers, priced in the range of Rs 310-314 per share. Morgan Stanley, BofA Securities, Jefferies, and BNP Paribas are overseeing the transaction.

Vodafone PLC intends to utilize proceeds from this stake sale, part of its broader strategy to reduce its net debt of $42.17 billion. Initially owning 21.5% of Indus Towers, Vodafone had announced plans in 2022 to divest its entire 28% stake, but has only managed partial sales thus far.

Analysts at JPMorgan anticipate that this divestment could generate $2.3 billion, potentially facilitating quicker debt repayment and even leading to special dividends for Indus Towers shareholders.

As of June 18, Indus Towers’ stock closed at Rs 346.45, marking a 1.67% increase on the National Stock Exchange, while Vodafone Idea saw a 0.84% rise to Rs 16.87. Vodafone and the involved investment banks were not immediately available for comment on the matter.

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