Vodafone Idea Limited (Vi) is in talks with American Tower Corporation (ATC) to extend an agreement to sell optionally convertible debentures (OCDs) to ATC after the telco’s shareholders’ approval for the sale has lapsed.
According to Vi, the sale was contingent on the conversion by the government’s interest from the deferment of adjusted gross revenue (AGR) and spectrum dues of Rs 160 billion into equity shares, which has not taken place. In a filing with the Bombay Stock Exchange (BSE), Vi informed that one of the conditions precedent for the preferential issue was conversion by the government of interest from deferment of AGR and spectrum dues owed by the company into equity shares. As the company has not received any communication from the government on such conversion, the issuance of OCDs to ATC has not been completed within the validity period of the shareholders’ resolution (15 days from the date of passing of the resolution). Accordingly, the shareholders’ resolution has lapsed.
Vi added that the company is in discussion with ATC for an extension of the agreement, and fresh shareholders’ approval will be sought as required.
