India's Airtel in talks to buy Vodafone UK's stake in Indus Towers, ET reports (updated)

Indus Towers

24/04/2024 05:03

(Adds details on the talks, share movement and background)
       BENGALURU, April 24 (Reuters) - Bharti Airtel  BRTI.NS 
is in talks to buy UK-based Vodafone Group's  VOD.L  21.05%
stake in Indus Towers  INUS.NS , potentially giving the Indian
telecom operator a controlling stake, the Economic Times
newspaper reported on Wednesday.
    If the deal fructifies, the British carrier could infuse
some of the proceeds into Vodafone Idea  VODA.NS , its
cash-strapped Indian venture with Aditya Birla Group, the report
said, citing unnamed sources.
    Billionaire Sunil Mittal-led Airtel, Indus' largest
shareholder with a 47.95% stake, did not immediately respond to
a request for comment from Reuters. 
    Vodafone Group, Vodafone Idea and Indus Towers also did not
respond to requests for comment. 
    Shares of Airtel were up 0.2% while Vodafone Idea was down
3.5% in early trade on Wednesday. Indus Towers was trading 0.11%
higher at 359.90 rupees. 
    The discussions, however, are stuck over valuation as Airtel
is not willing to buy the stake at Indus Towers' current share
price, which has climbed over 77% since January, the report
said.  
    Airtel is looking for a valuation of 210-212 rupees per
share - the level at which U.S. private equity fund KKR  KKR.N 
and Canadian pension fund Canada Pension Plan Investment Board
sold shares in Indus in February, the newspaper reported.
    Earlier this month, Vodafone Idea raised 20.75 billion
rupees ($249.08 million) as part of a larger equity funding,
from Aditya Birla Group entity Oriana Investments via
preferential shares. 
    It plans to raise 200 billion rupees through equity and 250
billion rupees via debt, it said in February, to roll out its 5G
network service and expand its 4G coverage. Larger rivals Airtel
and Reliance Jio have already launched their 5G services in most
parts of the country. 
    
($1 = 83.3080 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru; Editing by Rashmi Aich
and Janane Venkatraman)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))