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Vodafone Idea jumps 5% on reports of fundraising plan

Voda Idea was in talks to sell its optic fibre business to Brookfield Asset Management.

ETMarkets.com|
Updated: Dec 11, 2019, 03.43 PM IST
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The company reported a record loss of Rs 50,921 crore for the September quarter, as it made a provision for the payment of statutory dues.
Shares of Vodafone Idea surged 5 per cent in Wednesday's session amid reports that the company was planning to raise $2.5 billion by sale of assets.

ET quoting sources reported that the telecom operator was in talks to sell its optic fibre business to Brookfield Asset Management Inc. and its data centre to the Edelweiss Group as the telco seeks to raise over $2.5 billion from asset sales ahead of a January deadline to pay statutory dues.

“The company is in talks with global asset manager Brookfield to sell its 156,000 km of optic fibre assets and Bank of America and Morgan Stanley are the bankers helping Vodafone negotiate with potential buyers,” the report quoted a source.

Vodafone Idea is staring at paying up over Rs 53,000 crore ($7.5 billion) after the Supreme Court upheld the government’s definition of adjusted gross revenue (AGR) for telcos to include revenue from non-core activities. The telcos have sought a review of the October 24 order, which stated that the dues should be cleared within three months.

The company reported a record loss of Rs 50,921 crore for the September quarter, as it made a provision for the payment of statutory dues.

The company, along with other telecom services providers, also raised tariff rates by up to 40 per cent on its popular plans from December first week. This is also likely to augment its balance sheet.

However, the company is still hoping for government help. Its chairman Kumar Manglam Birla last week said that Vodafone Idea may have to shut shops if there was no olive branch from the Centre.

The shares of the company closed 1.98 per cent higher at Rs 6.69 on BSE.

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