VAHAN shareholders' approval for release of ₹1600 crore OCD to ATC stands canceled in the absence of response from the government.
VAHAN shareholders' approval for release of ₹1600 crore OCD to ATC stands canceled in the absence of response from the government.
Vodafone Idea's proposal to issue debentures worth Rs 1,600 crore to ATC Telecom Infrastructure has lapsed in the absence of any response from the government on converting the outstanding interest into equity.
Debt-ridden telco Vodafone Idea (VIL) has decided to issue mobile tower seller ATC Telecom Infrastructure Debentures worth Rs 1,600 crore due to no response from the government regarding conversion of outstanding interest into equity, the telecom operator said. Offer has expired. Tuesday
Last month, shareholders of Vodafone Idea approved preferential issue of optionally convertible debentures (OCDs) worth ₹1,600 crore to ATC Telecom Infrastructure to settle the infrastructure vendor's debt by converting the outstanding amount into equity. Provided that the balance amount is not paid within 18 years. month.
The OCD issue to ATC was subject to certain conditions including Government approval which were not adhered to.
The regulatory filing by the company said, “We wish to inform you that as mentioned in the EGM (Extraordinary General Meeting) notice, one of the conditions precedent to the preferential issue was the conversion from deferment of interest by the Government of India . Adjusted gross revenue and spectrum dues held by the company in the equity shares of the company. Since the Company has not received any communication from the Government of India on such change, issue of OCD to ATC has not been completed within the validity period of the shareholders' resolution (i.e. 15 days from the date of passing of the resolution). Accordingly the shareholders' resolution stands terminated."
The statement further said, "The company is in discussion with ATC for extension of the agreement and approval of new shareholders will be sought as required."
According to VIL, by the time the OCDs were issued in equity, the government would have converted the interest from deferring the spectrum dues of the company and adjusting the gross revenue.
The government has given option to telecom operators to pay interest on NPV of such interest amount by converting it into equity. This option is available for both AGR dues and interest on deferred spectrum instalments.
Equivalent to about 33% stake in the company, VIL has chosen to convert an interest liability of about ₹16,000 crore that must be paid to the government into equity. Promoters' ownership will come down to 50% from 74.99%.
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