Vodafone Group has announced the sale of its remaining 3% stake in the Indian tower company Indus Towers for US$300 million to help reduce its significant debt pile.
In a stock exchange filing, Vodafone detailed that the minority stake represents its remaining 79.2 million shares in the tower company. Proceeds from the deal will first be used to pay off debts amounting to US$101 million, which were secured against Indian assets.
In June, the operator announced the sale of 484.7 million shares (18%) to raise INR 153 billion (US$1.8 billion), also aimed at debt reduction.
Vodafone was hit with a massive bill from the Indian government in 2019 after the Supreme Court upheld the government’s right to charge operators for Adjusted Gross Revenue (AGR). Vodafone was particularly hard-hit by this charge due to its size and subscriber base, with its bill amounting to US$7 billion.
Revenue and profits were further impacted by intense price competition from rivals, most notably Reliance Jio, which entered the market with aggressive pricing and promotions.
