Bharti Airtel has dismissed rumors of engaging in negotiations to purchase Vodafone Group's stake in Indus Towers, a move that could potentially involve injecting funds into Vodafone Idea, a struggling venture in India. The company stated that any adjustments to its stake in Indus Towers would be solely for financial consolidation purposes and in compliance with disclosure requirements.
As the largest shareholder in Indus Towers with almost 48 per cent stake, Airtel has clarified that it currently has no plans to raise its ownership beyond what is essential. Emerging reports indicated that talks surrounding the acquisition were halted due to valuation concerns, with Airtel seeking a share price range that mirrors previous transactions involving private equity firms like KKR and Canadian pension funds.
Vodafone Idea recently secured funding through equity from the Aditya Birla Group, aiming to raise substantial capital for the deployment of 5G network services and expansion of their 4G coverage in the competitive Indian telecom market. While rivals Airtel and Reliance Jio have already introduced 5G services across the country, Vodafone Idea's financial moves suggest a strategic push to strengthen its position in the industry.