Vodafone Idea Planning to Get Credit from Oaktree Capital

Oaktree Capital will pay AGR dues of Vodafone Idea against its 11.5% stake in Indus tower at a higher rate of interest

By February 26th, 2020 AT 3:43 PM
  • Vodafone Idea has to pay AGR dues of Rs 53,000 crore
  • Vodafone Idea will receive Rs 4,500 crore from stake sale in Indus Towers
  • Vodafone Group Plc holds a 42% stake in Indus Towers

Vodafone Idea has been surrounded by cash crunch as no relief has been given by the Supreme Court. However, the telco giant might get a big mollification as Oaktree capital is planning to lend 11.5 % stake in Indus tower. However, Vodafone Idea must expect a higher rate of interest around 20%. According to a report by ET Telecom, Oaktree Capital is a financial company located in foreign, which works aggressively distressed fund. As the news of telco giant’s money woes spread in the market, Oaktree capital is ready to help the distressed telco by paying their funds against the realised value from the stake sale in advance.

Vodafone to Receive Rs 4,500 Crore from Stake Sale in Indus Tower

Vodafone Idea has been instructed to pay their AGR dues till March 17, 2020. In the Recent developments, India’s second-largest telecom operator is expecting Rs 4,500 crore from the merger of Bharti Infratel and Indus Towers. Once the merger approval reaches the final stage, Vodafone Idea will receive the amount from its stake sale, and Oaktree capital will take their payment from the deal. Bharti and Vodafone PLC own 42% stake each in Indus Towers. Whereas, Vodafone Idea and providence holds 11.5% and 4.85% respectively in the merger.

Bharti Infratel and Vodafone Idea have Locked Horns

Vodafone Idea has to pay total AGR dues of Rs 53,000 crore out of which the telco giant has already paid Rs 3,500 crore. As per the sources of ET, the deal between Vodafone Idea and Bharti Group was supposed to happen in an all-cash contract after the dues have been cleared. However, no agreement has been signed according to the sources of the Bharti Group.

In an exchange filing, Bharti Infratel stated that “the board has further extended the date of merger till April 24 which will be subjected agreements on closing adjustments and other conditions, with each party retaining the right to cancel and withdraw the scheme.” However, spokespersons for Vodafone Idea and Bharti Infratel have not responded to queries put up by ETBFSI.

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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