Vodafone Idea sold its stake in infrastructure unit Indus Towers for INR37.6 billion ($507.2 million) as the debt-ridden operator looked to ease its financial burden.
Bloomberg reported, Vodafone Idea will not receive all the sum, as it owed the tower operator INR24 billion, which will be deducted, the company said in a statement.
Vodafone’s Indian unit shed its 11.5% share in Indus Towers to existing shareholders, the company stated in a filing. Post-transaction, Bharti Infratel will hold 36.7%, Vodafone Group 28.1%, and investment companies KKR and Canada Pension Plan Investment Board hold the rest.
The sale comes as Indus Towers completed a merger with Bharti Infratel which was two years in the process.
Vodafone Idea was formed with the merger between Vodafone and Idea Cellular in 2017, but since the tie-up the JV did not report an annual profit, tallying up to $15 billion in net debt. The company also faced stiff competition from rivals Reliance Jio and Bharti Airtel with the former launching four years ago with compelling consumer offers such as free calls and low-cost data.