Debt-laden Vodafone Idea and American Tower Corporation have agreed to extend the deadline to complete the ₹1,600 crore equity deal to February 28, 2023.
The mobile service company was supposed to issue shares to the tower company last week in lieu of its dues. However, one of the conditions set by ATC was that they would take up equity in the company after the government completed the conversion of Vodafone Idea’s debt to equity.
The government has so far remained silent on converting Vodafone Idea’s debt to equity. The company, which owes nearly ₹2-lakh crore to the government, has been discussing the matter with the Centre for over a year about the debt-to-equity conversion proviso. The government has expressed reluctance in the matter since the Department of Telecommunications continues to deliberate on the issue despite receiving the required approvals from the SEBI and the Finance Ministry.
Subject to conditions
While Vodafone Idea did not share any update on the talks with the Government, it said that the revised deadline for subscription of the OCDs could be pushed back again by mutual agreement because the deal is “subject to fulfillment of certain conditions precedent, including inter alia the approval of the shareholders of the Company (Vi) and conversion by the Government of India of interest from deferment of Adjusted Gross Revenue and Spectrum Dues owed by the Company into equity shares of the Company.”