Cash-strapped and struggling telecom major Vodafone Idea (Vi) is engaging with United States (US) based private equity (PE) major Apollo Global to secure funding of up to $3 billion, reports Economic Times.
If talks fructify, the funding could come in for the company over the next three months through a mix of debt and equity. This would help the company meet its major upcoming payment obligations.
To make this work with Apollo Global, Vi is said to be considering to even offer a sizable stake once there is an agreement on valuations and terms of the potential deal. Presently, United Kingdom (UK)-based Vodafone Group and the Aditya Birla Group own 44.39 per cent and 27.66 per cent stake in the company, respectively, as its co-promoters.
It should be noted that Vi is also aiming to raise as much as $1 billion from the sale of its fixed-line broadband subsidiary, optic fibre unit and data centres business, as it seeks to ease its cash crunch.
The company has to pay Rs 22,500 crore between December 2021 and April 2022 towards a mix of regular debt payments and dues related to adjusted gross revenue (AGR) and spectrum allocation.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.