Vodafone planning to exit Indus Towers with $2.3 billion stake sale via block deals: Report

Vodafone Group is likely to offload its entire $2.3 billion stake in Indus Towers through block deals next week, Reuters reported today quoting sources. The move will be part of the British firm's effort to repay debt.

Vodafone currently owns 21.5% of mobile-tower operator Indus via various group entities, valuing the investment at $2.3 billion as of stock price on June 14.

The final size of the stake sale is yet to be decided and could be lower than 21.5% if demand, which is still being assessed, is insufficient, the report said. Vodafone plans to sell the stake via block deals in Indian stock markets next week and has hired Bank of America, Morgan Stanley and BNP Paribas to manage the deal.

In April this year, Bharti Airtel denied news reports that it was in talks to buy Vodafone Group's 21.05 percent stake in Indus Towers. Billionaire Sunil Mittal-led Bharti Airtel is Indus Towers' largest shareholder, with a 47.95 percent  stake.

Indus Towers posted net profit of Rs 1,853 crore for the quarter ended March 2024, up by 32.4 percent from the quarter ended March 2023, where it recorded profits of nearly Rs 1,400 crore.

The country’s largest telecom tower provider’s revenues rose 6.5 percent to Rs 7,193 crore in the same period, up from Rs 6,753 crore the year before.

Consolidated earnings before interest, tax, depreciation and amortisation was at Rs 4,103 crore, up 19 percent on-year, representing an operating margin of 57 percent.

Indus Towers provides masts for mobile and data connectivity to all telcos operating in India. Its primary customers are Bharti Airtel and Vodafone Idea, the second and third largest carriers.