Bharti Airtel Denies Talks with Vodafone Group to Acquire Stake in Indus Towers

Bharti Airtel, India's leading telecommunications company, has denied any discussions with Vodafone Group regarding the acquisition of the latter's 21.05% stake in Indus Towers, a major telecom infrastructure provider. In a stock exchange filing on April 25, 2024, Airtel clarified that it has no desire to raise its stake in Indus Towers beyond what is required for the financial consolidation of the company.

The Economic Times had previously reported that Airtel was in talks to buy Vodafone's stake, potentially giving it a controlling interest in Indus Towers. However, the discussions were reportedly stalled over valuation disagreements, as Airtel was not willing to buy the stake at Indus Towers' current share price, which has climbed over 77% since January. Airtel is reportedly seeking a valuation of Rs 210-212 per share, the same range at which KKR and Canada Pension Plan Investment Board sold their Indus shares in February.

In response to Airtel's denial, shares of Bharti Airtel Ltd., Indus Towers Ltd., and Vodafone Idea Ltd. experienced fluctuations in Wednesday's trading session. Airtel's shares were up 0.3%, while Vodafone Idea's shares dropped 4.5%. Indus Towers' shares also reversed course to trade 1.4% lower at Rs 354.40.

Why this matters: The potential acquisition of Vodafone's stake in Indus Towers by Bharti Airtel would have significant implications for the Indian telecom industry. It would give Airtel a controlling stake in the country's largest telecom tower company, strengthening its position in the market. The denial of the talks highlights the importance of accurate information in the rapidly developing corporate acquisitions and mergers sector.

Bharti Airtel emphasized that Indus Towers is a critical infrastructure provider for the telecom industry and assured that it will ensure the company remains financially stable and in robust health. "Indus Towers is a provider of critical infrastructure services to the telecom industry. Airtel will ensure that Indus remains in robust health and financially stable," the company stated in its filing.

Currently, Bharti Airtel holds the largest stake in Indus Towers at 47.95%, while Vodafone Group holds 21.05%. If Airtel were to acquire Vodafone's shares, its stake in Indus Towers would increase to 69%. The

Key Takeaways

• Airtel denies discussions to acquire Vodafone's 21.05% stake in Indus Towers.
• Airtel seeks valuation of ₹210-212 per share, same as KKR-CPPIB sale in Feb.
• Airtel holds 47.95% in Indus Towers, Vodafone 21.05%; acquisition would make Airtel majority owner.
• Airtel says Indus Towers is critical infrastructure, will ensure its financial stability.
• Stocks of Airtel, Vodafone Idea, and Indus Towers saw fluctuations after Airtel's denial.