Bharti Airtel is reportedly in discussions with Vodafone Plc to acquire an additional 3 percent stake in Indus Towers, a telecom infrastructure company, according to CNBC TV18 sources. Bharti Airtel’s stock remained relatively unchanged on June 24, trading at Rs 1,414.3 in the afternoon, slightly down from its previous close.
Last week, Vodafone Group had sold an 18 percent equity stake in Indus Towers through block deals, generating approximately Rs 15,300 crore. Following this sale, Vodafone Group now holds a 3.1 percent share in Indus Towers.
In the same transaction, Bharti Airtel had purchased an additional 1 percent stake in Indus Towers, increasing its ownership in the company to nearly 49 percent. The proposed acquisition of an additional stake would elevate Bharti Airtel to become the majority shareholder in Indus Towers with a 52 percent stake.
According to CNBC TV18’s report, Airtel intends to integrate Indus Towers with its data centre business Nxtra. The cash from Indus Towers would be utilized to expand Nxtra, aiming to streamline Airtel’s telecom operations by leveraging Nxtra and merging it with Indus Towers.
This merger strategy is expected to unlock value and facilitate Carlyle’s exit from its investment. Carlyle had acquired a 24 percent stake in Nxtra in 2020.
On the other hand, Vodafone is anticipated to utilize the proceeds from the stake sale to settle dues owed to Indus Towers. A recent Reuters report indicated that Vodafone Group is exploring the sale of its entire $2.3 billion stake in Indus Towers as part of its strategic initiative to reduce its substantial net debt of $42.17 billion. Vodafone had initially announced its intention to divest its then-28 percent stake in Indus Towers back in 2022, with progress accelerating significantly last week.
