Vodafone to Raise $1.98 Billion From Stake Sale in Indian Telecom Tower Company — Update

By P.R. Venkat

Vodafone Group plans to raise as much as $1.98 billion by selling the bulk of its stake in an Indian telecom tower operator, according to a term sheet seen by The Wall Street Journal.

The latest term sheet showed an increased deal size, with the U.K. telecom operator now planning to sell 484.68 million shares, representing a nearly 18% stake in Indus Towers.

Vodafone had earlier planned to sell 268.0 million shares, or a 9.9% stake, in the Indian telecom tower company.

The shares are being offered at a price range of 310 rupees to 341 rupees each, equivalent to $3.72-$4.09 a share. At the lower end of the band, the offer represents a 9.9% discount to Indus Towers' Tuesday closing price of INR343.90 a share. Shares in Indus Towers fell as much as 6.8% in early Wednesday trading.

The term sheet said the transaction could happen as one or more share sales on the screen-based trading platform of Indian stock exchanges.

In 2013, Indian telecom operators Bharti Airtel, Vodafone and Idea Cellular combined their telecom tower assets with Indus Towers. Airtel and Vodafone each had a 42% stake in the tower business, with Idea Cellular owning the rest.

Vodafone has been reducing its stake in Indus Towers over time and currently holds a 21% stake. In 2022, Vodafone said it talked to several parties about selling its remaining shareholding in Indus Towers.

Analysts expect Vodafone to use proceeds from the stake sale to pare its debt. Vodafone has been looking to restructure its business, especially in Europe. In March, the company agreed to sell its Italian business to Swisscom for $8.7 billion in cash.

Indus Towers is one of the world's largest telecom tower companies, operating 219,736 towers and 368,588 colocations. It has a nationwide presence covering all 22 telecom circles.

The term sheet named BofA Securities, Morgan Stanley and Jefferies among banks acting as placing agents on the Indus Towers deal.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

June 19, 2024 01:09 ET (05:09 GMT)

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