“…Pursuant to the terms of the security package provided by the Vodafone Promoters to secure the payment obligations of Vodafone Idea under the Master Services Agreements, the Company (read: Indus) released mortgage over the 17.98% shares held by the Vodafone Promoters in (Tower). Company on June 18, 2024, to effect sale of such shares for them,” Indus said in a statement on Wednesday.
Indus, however, said it continues to hold a (secondary) pledge on the remaining 3.06% stake held by Vodafone’s promoters in the tower company as per the terms of the existing security agreements.
As per the security package agreed during the previous merger of Bharti Infratel and Indus Towers, Vodafone’s previous 21.05% stake in Indus was the primary pledge against an initial $1.4 billion loan taken back by its lenders to Vodafone in 2019, brokerage JPMorgan said. Its Indian telecom JV, Vodafone participates in Idea’s rights issue. “If these shares are sold, then the proceeds will be used to first repay Vodafone UK’s creditors,” the global brokerage said.
Indus has a subordinate pledge on Vodafone’s remaining stake in the tower company with a maximum liability of Rs 4,250 crore. “It remains to be seen whether Vodafone UK will use any of the proceeds from the current stake sale to clear Indus’ share of Vodafone Idea’s old dues.. There is no clarity yet as the proceeds from the current stake sale appear to be aimed at clearing the British telco’s existing stake. . Lender’s dues,” a person familiar with the matter told ET.
Earlier in the day, the UK’s Vodafone said the proceeds from the sale of the 18% Indus stake would be used to clear the bulk of the UK company’s existing lender’s remaining €1.8 billion to secure against its Indian assets.
Shares of Indus on the BSE fell 2.88% to Rs. was closed at 334.
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