Bharti Airtel is reportedly in talks to buy UK-based Vodafone Group's 21.05 percent stake in Indus Towers. If the deal goes through, it could give India's second-largest telecommunications company a controlling stake in Indus Towers.
Suppose Vodafone Plc divests its stake in Indus Towers to Airtel. In that case, it may inject some of the proceeds into Vodafone Idea (Vi), its financially strained telecom venture in India in partnership with the Aditya Birla Group, The Economic Times has reported.
Moneycontrol couldn’t verify the report independently.
Sunil Bharti Mittal-led Airtel is reportedly reluctant to acquire Vodafone's stake at the Indus Towers’ current share price, which has surged over 77 percent since January, ET cited sources as saying.
Airtel is pushing for a valuation of Rs 210-212 a share, equivalent to the level at which US private equity firm KKR and Canadian pension fund CPPIB sold their stakes in Indus in February.
Also Read | KKR, pension fund CPPIB eyeing exit from Indus Towers
Airtel is the biggest shareholder in Indus Towers, with a 47.95 percent stake. If it acquires Vodafone stake, Airtel's shareholding will climb to 69 percent.
Vodafone Group holds 21.05 percent and the public 30.97 percent stake in the tower player, according to the company's latest filing with the BSE.
On February 4, Bharti Airtel announced acquiring a 23.01 percent stake in Indus Towers held by its wholly-owned subsidiary, Nettle Infrastructure. With the transaction, Bharti Airtel's direct stake in Indus Towers went up to 47.95 percent, it said a regulatory filing.
Prior to the acquisition, Bharti Airtel held 24.94 percent in Indus Towers directly.
The acquisition aligns with the "composite scheme of amalgamation" approved by the National Company Law Tribunal, Chandigarh bench, January 25, 2023, the filing said.
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