Bank of America, Morgan Stanley, and BNP Paribas have been hired to manage the sale in the Indian market
Vodafone is seeking to sell its 21.5% stake of India’s Indus Towers, which is worth around $2.3 billion, sources familiar with the matter told Reuters.
The sources said that the final stake sale remains undecided, but could be lower than 21.5% if demand is insufficient.
Indus Towers are one of the largest tower companies in the world, with 219,736 towers and 368,588 co-locations to its name as of March 2024.
Vodafone first announced its intention to sell its stake in 2022 (which then was 28%), but has only sold off a small percentage so far.
Staying with the Indian market, Indian operator Vodafone Idea has issued its network equipment vendors Nokia and Ericsson with preference shares instead of payment for product orders. If approved by investors, Nokia will receive nearly 1.03 billion shares and Ericsson 634 million, giving the companies a 1.48% and 0.91% stake in Vodafone Idea respectively.
“VIL is all set to participate in the industry growth with right investments to expand its 4G coverage and offer 5G experience to its customers while remaining focused on its execution capabilities,” said Akshaya Moondra, CEO of Vodafone Idea in a filing to the Bombay Stock Exchange.
“As VIL embarks on its growth journey, support from key stakeholders is critical and the agreement with Nokia and Ericsson reaffirms these vendors as long-term partners of the Company, and sets the stage for the next phase of our growth,” he continued.
The company has struggled with its cash flow for some time. Although the country’s third largest mobile operator by subscriber numbers, it struggles to compete with Reliance Jio and Bharti Airtel. The Indian government became the company’s largest shareholder last year (33.1%), but due to its debt, remains as India’s only telco yet to launch 5G services, Vodafone looks to sell $2.3 billion Indus Towers stake
