Struggling to pay its pending dues, Vodafone Idea has decided to offer equity shares worth ₹1,600 crore to American Tower Corporation (ATC). Equity will be allotted to the tower company on a preferential basis. Thus the tower company will own approximately 5 per cent stake in the telecom operator.
In its stock exchange filing on Thursday, Vodafone Idea said, “Vi board has, inter-alia, approved issuance of upto 16,000 Indian rupee-denominated optionally convertible, unsecured, unrated and unlisted debentures having a face value of ₹10,00,000 each, in one or more tranches, aggregating upto ₹1,600 crores, convertible into equity shares at a conversion price of ₹10 per equity share.”
Subject to conditions
“The funds so raised shall be used to pay ATC, amounts owed to ATC by the Company, under the master lease agreements and, to the extent of any remainder, for general corporate purposes of the Company. The preferential issue would be subject to certain conditions precedent, including inter alia the approval of the Company shareholders and Government of India, having converted the interest from deferment of adjusted gross revenue and spectrum dues owed by the Company,” Vi added.
The Board also approved convening of an extraordinary general meeting of the Company on November 21–2022, to seek approval of shareholders for the aforesaid preferential issue.
Who is ATC?
American Tower Corporation (also referred to as American Tower or ATC) is an American real estate investment trust and an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide and is headquartered in Boston, Massachusetts.