Birla offers Voda Idea stake to government
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Birla offers Voda Idea stake to government
Pankaj Doval / TNN / Aug 3, 2021, 04:05 IST
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NEW DELHI: Unable to work out a revival for the ailing telcom company Vodafone Idea (VIL), company chairman Kumar Mangalam Birla has offered his group’s stake to the government or any other entity that it deems fit, saying that the measure is required in “national interest” as the operations are headed towards an “irretrievable point of collapse”.
Birla’s appeal, through a letter written to cabinet secretary Rajiv Gauba on June 7, displays a last-ditch effort by the Indian group which holds around 27% stake in VIL (UK’s Vodafone Plc holds about 44%) to salvage the company ahead of possible defaults on statutory payments and bank dues.
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Synopsis
Separately, one of Vi’s domestic lenders, a large public-sector bank, recently extended a bank guarantee for about Rs 1,420 crore by another year, which will be used to clear its remaining dues to the government for 4G spectrum acquired in March.
“Vi has assured us of raising some funds by June-end as due diligence by some investors is at a peak,” the top executive of a bank that advanced a sizable loan to the telco told ET.
Vodafone Idea (Vi) has assured lenders that it expects to conclude its delayed fundraising, initially of about $1 billion (Rs 7,500 crore), by the end of June and that it won’t default on any upcoming payments, people familiar with the matter said.