Vodafone Idea share price jumps 5% on $4-6 billion investment report; key details

Shares of Vodafone Idea Ltd rose 5 per cent on Monday following reports that private equity firm Tillman Global Holdings (TGH) is in talks to invest $4-6 billion (approximately Rs 35,000–52,800 crore) in the debt-laden telecom operator and assume operational control, people familiar with the matter said. The potential investment, however, is contingent on the government extending a comprehensive relief package that addresses all of Vi’s liabilities, including AGR-related dues and spectrum payments.

Following the development, the stock rose 5.26 per cent to hit a high of Rs 9.19 on BSE. The stock is up 36.46 per cent in the past three months.

If the deal happens, Economic Times quoted a source saying, TGH will take the promoter status and take control from existing promoters Aditya Birla Group and UK’s Vodafone. This source added that the Indian government, the largest shareholder in Vodafone Idea with a 49 per cent stake, would stay as a passive minority investor. Business Today could not independently verify the veracity of the report.

The report suggested that the New York–based investment firm was not seeking a complete waiver of dues, but a restructuring of Vodafone Idea’s liabilities to provide operational breathing room, as per people familiar with the matter said. TGH has submitted a detailed proposal to the government outlining the terms, ET reported.

“The proposal from TGH would be in conjunction with the dues being resolved. The restructuring package sought by the firm would be conditioned on its investment and its investment would be conditioned on the waiver package,” it quoted the source.

In case the government provides a relief package to vi, a deal may be finalised in the coming months, it added.

“From the government’s perspective, it’s not about just providing a waiver, but how can a waiver be given in conjunction with bringing investment and operational expertise,” ET quoted another person involved in the discussions.