US wireless carriers Verizon and Amazon may invest more than $4 billion (about Rs 29,354 crore) for stake in India’s Vodafone Idea, Mint newspaper reported on Thursday.
Shares of the struggling Indian telecom firm rose up to 30 per cent.
The news comes days after India’s top court ruled that mobile carriers would have to settle government dues within 10 years, giving Vodafone Idea some relief in a case it said was a concern. can affect the ability to continue as a subject.
Vodafone Idea, a joint venture between Vodafone of Britain and Idea of India, still owes Rs. 50,000 crores to the Government of India.
Vodafone Idea stake-sale talks were put on hold thanks to court ruling, but Amazon and Verizon are now set to resume them, Mint informed ofCiting two people aware of the talks.
Amazon and Verizon did not respond to Reuters requests for comment outside of regular US business hours.
Tuesday’s decision has brought some relief to Vodafone Idea, India’s third-largest telecom company by subscribers, but analysts say the loss-making company remains under financial strain.
Shares of Vodafone Idea hit a high of more than a year before closing up 26.77 per cent amid a flurry of news about its fundraising plans.
CNBC-TV18 reported that Vodafone Idea may “examine” the sale of its optic fiber business at a board meeting scheduled for Friday to discuss the fundraising plan.
CNBC-TV18 said Canada-based Brookfield Asset Management and private equity group KKR were the contenders for the business.
According to a Bloomberg News report, Vodafone Idea was planning to raise around $1.5 billion (about Rs 11,030 crore) and was working with advisors to find investors.
Vodafone Idea and KKR declined to comment, while a representative for Brookfield did not immediately respond to a request for comment.
© Thomson Reuters 2020
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