Arun Kumar
The principal shareholders, Bharti Group and Vodafone, have opted for a share-swap arrangement instead of the original plan, under which Bharti Infratel would acquire Vodafone Idea’s entire 11.15% stake in Indus Towers for about Rs 4,500 crore in cash.
The government held stakes through Specified Undertaking of the Unit Trust of India (SUUTI).
India’s fourth-largest private sector bank will become a strategic partner of the life insurance firm, in which Max Financial will eventually hold 70% after a two-stage transaction.
People with knowledge of the matter said the reason is uncertainty over the survival of a cash-strapped Vodafone Idea.
Majority owned by Bharti Airtel, Infratel is awaiting the outcome of the next hearing in the Supreme Court on the AGR issue on March 17, that will take stock of payments by telecom operators including Vodafone Idea. The latter is pressing for the deal to be implemented at the earliest, so that it can monetise its 7 per cent in the merged entity for Rs 4,500 crore.
Max Group’s Singh said a deal would give a boost to the overall life insurance sector.
The proposed deal is aimed at building a strategic and long-term relationship with Axis Bank.
The Rs 400 crore project, with a built-up area of 700,000 square feet, will be the second investment of New York Life Insurance in Max Ventures and Industries in the past two years.
Apax Partners also approached; Hero Corp & Analjit Singh currently in exclusive discussions
The outstanding debt of the Jaiprakash Associates group company has reduced to less than Rs 6,000 crore, from more than Rs 11,000 crore, following the restructuring. The terms involve an interest write back of about Rs 2,000 crore that will help the company report a net profit this fiscal, people in the know said.
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