Vodafone Group Weighs Stake Transfer to Support Vodafone Idea’s Fundraising: Report

UK-based Vodafone Group is considering transferring part of its 19 percent stake in Vodafone Idea (Vi) to the Indian unit for treasury holding, according to a Bloomberg News report published on Friday. The move is aimed at strengthening Vodafone Idea’s capital position after the Indian government reduced the company’s outstanding spectrum-related dues.

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Also Read: Kumar Mangalam Birla Appointed Chairman of Vodafone Idea

Move May Replace Fresh Capital Infusion

The proposed share transfer would serve as an alternative to a fresh cash infusion by Vodafone Group and is expected to support Vodafone Idea’s ongoing efforts to secure debt funding, the report said, citing sources familiar with the matter.

Vi May Monetise Treasury Shares Later

Vodafone Idea could later sell the treasury shares to raise additional capital for clearing government liabilities and funding expansion plans. The telecom operator has been seeking to regain market share amid intense competition from rivals, including Reliance Jio Infocomm, the report added.

Also Read: Vodafone Idea’s AGR Dues Finalised at Rs 64,046 Crore Following DoT Review

Government Cuts Vi’s AGR-Linked Dues

Vodafone Idea recently said the Indian government had reduced its long-pending dues linked to spectrum fees and adjusted gross revenue (AGR) liabilities to Rs 64,046 crore from Rs 87,695 crore earlier. The dues arose from a prolonged legal dispute over the government’s method of calculating AGR, a key metric used to determine licence fees and other statutory payments payable by telecom operators.

Also Read: SBI-Led Consortium Weighs Rs 25,000-Crore Loan for Vodafone Idea After AGR Relief