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Verizon, Amazon may invest over $4 billion in Vodafone Idea: Report

The fundraising is crucial for cash-strapped Vodafone Idea to pay government dues and invest in upgrading its network

Topics
Vodafone Idea | Verizon | Amazon

Reuters  |  Bengaluru 

Vodafone Idea
The company reported a staggering loss of ₹25,460 crore in the June quarter due to one-time charges, including provisions to cover payments due to the government.

US wireless carrier Communications Inc and com Inc may invest more than $4 billion for a stake in India's Ltd, the Mint newspaper reported on Thursday, sending shares in the struggling Indian telecom firm up 10 per cent.

Vodafone Idea's stake-sale talks had been paused pending the outcome of a court hearing in India, which created uncertainty and could have threatened Vodafone Idea's survival, Mint reported, citing two unnamed people aware of the negotiations.

But and are set to resume discussions following a Supreme Court ruling on Tuesday which gave mobile carriers 10 years to settle government dues.

did not immediately respond to Reuters request for comment. and did not return emails seeking comment outside regular U.S. business hours.

Heavily indebted - a joint venture between Britain's Vodafone Group Plc and India's Idea Cellular - had previously said its ability to continue as a going concern rested on a positive outcome of the hearing.

It has paid the Indian government Rs 7,850 crore ($1.1 billion) in telecoms dues, according to regulatory filings, but still owes roughly Rs 50,000 crore ($6.8 billion) more.

Shares in Vodafone Idea, which ended 13 per cent lower after Tuesday's court ruling, were up 8 per cent at Rs 10.70 on the NSE index by 0405 GMT.

 

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First Published: Thu, September 03 2020. 09:28 IST
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