• The carrier has decided to sell convertible bonds worth ₹1,600 crore to ATC Telecom Infrastructure, which the carrier will use to pay certain dues to tower operators for renting out its assets for providing mobile phone services in India. will be taken for
New Delhi: Vodafone Idea has initiated discussions with American Tower Corp to approach the tower provider with a preferential issue of optionally convertible debentures.
The No 2 carrier told the exchanges on Tuesday that the adjusted gross revenue and interest from deferment of spectrum dues of ₹16,000 crore was released by the company on conversion by the government into equity shares, which have not happened.
"One of the conditions precedent for the preferential issue was the conversion of interest from the moratorium of AGR by the Government of India and the outstanding spectrum dues by the Company into equity shares. Since the Company has not received any communication from the Government of India on such conversion, Issuance of OCD to ATC is not completed within the validity period of the shareholders' resolution (15 days from the date of passing of the resolution). Accordingly the shareholders' resolution stands lapsed," Vodafone Idea said in a notice to BSE on Tuesday.
It added, "The company is in discussion with ATC for extension of the agreement and approval of new shareholders will be sought as required." Shares of Vodafone Idea closed at ₹8.07, down 1.22% on Tuesday.
The loss-making carrier had decided to sell convertible bonds worth ₹1,600 crore to ATC Telecom Infrastructure, which would be used by the carrier to clear the dues for renting out its assets for providing mobile phone services to tower operators. will be taken for India.
The telco's plan consisted of selling 16,000 optionally convertible, unsecured, unrated and unlisted debentures of ₹10 lakh each in one or more tranches. The bonds were to carry a coupon rate of 11.2% per annum, payable half-yearly over a period of 18 months, and would be convertible into shares at a price of ₹10 per share.
It is not clear whether the terms and conditions of the bond issue will remain unchanged when Vodafone Idea seeks extension of the agreement and fresh shareholder approval.
Currently, Vodafone Idea owes ATC over ₹3,000 crore and an additional estimated ₹7,000 crore to Indus Towers, the world's largest tower provider, according to people familiar with the development.
Vodafone Idea sought softer payment terms from Indus Towers, including additional time and partial payment of its outstanding dues, following reports of the tower provider considering suspension of services if its dues were not cleared.
Vodafone Idea Chief Executive Officer Akshay Mundhra said last month that the company had not heard from the government, and added that he was not sure about the reasons for the delay on the part of the government on the equity conversion.
The loss-making carrier is looking to raise ₹20,000 crore in debt and equity from outside investors from 2020. The No.3 carrier had received equity infusion of ₹4,500 crore earlier in the financial year from promoters Aditya Birla Group and Vodafone Group Plc.
Mundra had said that Vodafone Idea's fund raising was also dependent on conversion to equity which was yet to happen.
No comments:
Post a Comment