Bharti Infratel-Indus Towers Merger Delay to Impact Vodafone Idea’s Capability to Raise Funds

Vodafone Idea has just paid 13% of the total outstanding AGR dues.

bharti-infratel-indus-towers-impact-vodafone-ideas

Bharti Infratel’s move to extend the deadline for the merger with Indus Towers by over two months till August 31 will now impact Vodafone Idea’s capability to raise funds to clear a part of AGR-related dues. Currently, Vodafone Idea has just paid 13% of the total outstanding AGR dues.

Bharti Infratel, in a regulatory filing, had said that its Board of Directors reviewed the status of the scheme of arrangement between Indus Towers and Bharti Infratel and extended the long stop-gap date of the proposed merger to 31 August 2020.

“Since the conditions precedent to be fulfilled for the scheme to become effective cannot be completed by the extended-Long Stop Date, i.e., June 24, 2020, the Board of Directors have further extended the Long Stop Date till August 31, 2020, subject to agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the scheme,” Bharti Infratel said in its regulatory filing earlier this week.

Vodafone Idea was looking to raise Rs 6,500 crore

Vodafone Idea was looking to clear a part of AGR-related dues through by selling 11.15% stake in Indus Towers after the merger with Bharti Infratel. The telco was looking to raise Rs 6,500 crore by selling its stake in Indus Tower. However, the valuation has now plunged to Rs 4700 crore.

In the last Supreme Court hearing, Vodafone Idea said that it has not made profits for several quarters, and has no funds to make payments towards the AGR-related dues. The telco’s also refused to provide any bank guarantees. Vodafone Idea has also warned that it will “go bust” if it is made to pay AGR dues in one shot. The telco has already paid nearly Rs 7,000 crore and had informed the Court that its licenses and spectrum can be used as security against AGR dues. Vodafone Idea owes Rs 58,254 crore or $7.6 billion towards AGR-related dues.

Vodafone Idea will require a combination of additional tariff hikes, equity infusion, tower monetisation, and rationalisation of levies to be able to repay its AGR dues, Citi Research said in its recent note, said.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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Kiran Fernandes | GoaamitThamilan daaVodafoneVodafone Lover Recent comment authors
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Vodafone Lover
Vodafone Lover

Vodafone postpaid red basic cocp 299 plan speed (earlier idea postpaid)

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amit
amit

plan benefits and handset make pls??

Vodafone Lover
Vodafone Lover

Idea postpaid to Vodafone red migration started at 4 pm today (28th June) will be completed on 6am 29th June. See below images.

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Kiran Fernandes | Goa
Kiran Fernandes | Goa

So this is proof that VIL is only going to become Vodafone India, and they’re gonna close Idea. I’m on Idea prepaid, and my 1499 pack expires in November.

Kiran Fernandes | Goa
Kiran Fernandes | Goa

Yeah I’m not worried. I took the 1499 plan because I barely use Idea in Goa. The slow speeds make me cringe. In the heart of the city i get 1 – 1.5Mbps on Idea whereas Jio, it’s a decent 12 to 20Mbps on band 40 in spite of having the most amount of users. I hope Idea is shifted to Vodafone soon. Can’t wait to figure out how good their 4G is on band 1 / 41, and if CA is enabled in Mapusa.

I wonder though. Will I need to change my Idea sim to Vodafone?

Vodafone Lover
Vodafone Lover

You don’t have to change simcard

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