Vodafone's potential Indus stake sale could speed up repayments to tower company: JPMorgan
Summary - Vodafone Group is selling a larger stake (18% instead of 9.94%) in Indus Towers for $1.8 billion to reduce its debt. This sale could help Vodafone repay debt faster and potentially lead to a special dividend for Indus Towers' shareholders.
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Jun 18, 2024
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Vodafone Group has increased the Indus Towers' block offer size to $1.8 billion from $1.1 billion, reported CNBC TV18 citing unidentified sources. UK-based Vodafone is now likely to sell up to 18 percent equity stake in Indus Towers. The block deal is expected later on 19 June.
Vodafone Group has announced plans to offload its entire stake in Indus Towers, to help trim the group's significant $42.17 billion net debt. However, the firm still holds 21.5 percent stake in Indus Towers, valued at about $2.3 billion. Earlier, JPMorgan analysts noted that the sale could expedite Vodafone group's debt repayments and possibly enable a special dividend for Indus Towers' shareholders.
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