Airtel has entered into an agreement with Vodafone Group to buy 4.7 per cent equity interest in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea Limited (Vi) and simultaneously remitted to Indus Towers to clear Vi’s outstanding dues. The said acquisition 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.
Any such acquisition shall only be done when such proceeds are confirmed to be utilised by Vodafone to infuse as equity into Vi including any regulatory or shareholders’ approval being fully obtained.
Airtel believes that this transaction allows it to secure continued strong provision of services from Indus Towers, protects and enhances Airtel’s value in Indus Towers, enables it to receive rich dividends and as also paves the way for subsequent financial consolidation of Indus Towers in Airtel.
This self-paying capital allocation is expected to serve multiple strategic purposes for Airtel.
Airtel remains committed to look at opportunities for monetising this vital asset at an appropriate time. In doing so it will ensure that the tower company has been stabilised and any new strategic or financial investor/s has the ability to continue to serve the critical needs of Airtel.