Vodafone Group has decided to sell its 3 percent stake in Indian telecom tower company Indus Towers.
Vodafone Group has launched a placing of its remaining 79.2 million shares in Indus Towers through an accelerated book build offering.
Vodafone will use the proceeds to repay Vodafone’s outstanding borrowings of 101 million to Vodafone’s existing lenders.
Indus has a security over the residual proceeds from the Placing to guarantee obligations from Vodafone Idea (Vi) to Indus under the Master Services Agreements (MSAs).
Vodafone intends to contribute the residual proceeds from the Placing (after repayment of Vodafone’s outstanding borrowings) towards an issue of new equity shares by Vi. The proceeds from the Capital Raise would be used by Vi to pay outstanding MSA dues to Indus.
