Bharti Airtel and Vodafone Idea have announced the divestment of their entire stake in FireFly Networks. This decision marks the end of FireFly's status as a joint venture between the two telecom companies. In an exchange filing today, both the companies said they have entered into Share Purchase Agreements (SPA) with Manipura Digital Infrastructure Opco, based in Singapore, for the transfer of their respective stakes in FireFly.
Also Read: Airtel and Vi to Sell 100% Stake in Wi-Fi JV FireFly
The divestment involves the transfer of Bharti Airtel's and Vodafone Idea's 50 percent equity stake each in FireFly Networks. The consideration for this transfer amounts to Rs 60.47 million (Rs 6.047 crores) for each company.
"Upon transfer of its stake, Firefly would cease to be a Joint Venture of the Company," Bharti Airtel and Vodafone Idea (Vi) said in their statements in an exchange filing.
Transaction Timeline
The completion of this sale is contingent on the fulfilment of closing conditions and is expected to occur within 45 days from the date of the agreement, signed on November 4, 2023.
FireFly Networks
FireFly Networks, which was established in 2014 as a joint venture between Bharti Airtel and Vodafone Idea, aimed to provide WiFi services in the country. FireFly operates as a vendor and operator-neutral company that deploys a neutral network shared by telecom and internet providers.
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Financial Contribution
During the financial year 2022-23, FireFly contributed 0.007 percent to Airtel's Rs 139,144.8 crore consolidated turnover and 0.005 percent to its net worth (Rs 106,444.3 crore). In the case of Vodafone Idea, the WiFi infrastructure provider contributed Rs 5 million to its bottom line and Rs 58 million to the company's net worth.
