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Certain reports are suggesting that UK giant Vodafone is currently in talks to sell its residual stake in Indus Towers to Caisse de dépôt et placement du Québec (CDPQ).
Indus Towers is India's largest mobile tower installation company which offers passive infrastructure services to telecom operators and other wireless services providers. The company is reported to have over 1.8 lakh towers with a nationwide presence in all 22 telecom circles.
Earlier in February 2022, it was reported that the Vodafone Group was planning to sell a 2.4% stake in Indus Towers. Vodafone Group plc has a 21.1% stake in Indus Towers. This is after 7% of its stake was pledged to Indus as a security arrangement. At existing share prices, the stake could be valued around Rs 11,300 crores.
According to the report by ET, both sides have held meetings for the sale and the formal due diligence is expected to begin soon. However, the discussions being held are said to be in the preliminary stages and there is no confirmation of a transaction yet. The same has not been confirmed by a representative from either side.
This deal, should it see fruition, would be the largest by CDPQ in India. If Vodafone decides to sell its stake finally, it would mark the complete exit of the company from India's passive telecom infrastructure business in India. Moreover, Airtel had acquired a 4.7% stake from Vodafone earlier, so Vodafone's exit could be an opportunity for Airtel.
The share of Vodafone closed at around Rs 8.85 per share, down 0.56% yesterday.
Article by Aman Agarwal.
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