Vodafone Plc will be selling 2.68 crore shares or 9.94 per cent stake of Indus Towers through block deals for a total value of ₹8,308-9,138.8 crore, according to the term sheet viewed by businessline. The block deal will be conducted on June 19.

The deal price is in the range of ₹310-341, a discount ranging from 1 to 10 per cent on the prevailing market price. The stock closed 1.7 per cent higher at ₹346.45 today on the NSE.

The sellers are Euro Pscific Securities, CCII Mauritius, Asian Telecommunication Investments, Trans Crystal Ltd, Mobilvest, Prime Metals, Vodafone Telecommunications (India), and Al-Amin Investments, all wholly-owned indirect entities of Vodafone Plc.

The deal is being managed by Morgan Stanley, BofA Securities, Jefferies and BNP Paribas Securities.

Vodafone had not yet reverted to an email seeking a response on the proposed transaction.

Shareholding pattern

Vodafone Group Plc, through its indirect wholly owned subsidiaries, holds 567,164,035 shares, or 21.05 per cent stake in the company at the end of March 2024. According to exchange filings, these shares are pledged in favour of Axis Trustee Services, which is the security trustee. Its stake is worth around $2.4 billion at the current market price, with Indus Tower’s stock having appreciated 1.4 per cent over the last three months.

Bharti Airtel holds a majority 47.95 per cent stake in the tower company and has the right of first refusal, but reports have suggested in the past that it was not interested in exercising that right if there was another buyer. It had acquired a 4.7 per cent stake in the tower operator in 2022, when Vodafone Plc divested the stake.

The British telecom company has been trying for a long time to exit the tower company or at least sell a significant stake, but has been constrained by a lack of buyers. In March, this year, it had started the process of divesting stakes and talking to potential buyers, and according to sources, it had been looking to sell around a 3 per cent stake.

Media reports have said that New York-based investment firm Stonepeak and Florida-based I-Squared Capital, which invest in global infrastructure firms, could be potential buyers.