Oaktree teamed up with several other firms including Varde Partners for the potential deal with Vodafone Idea Ltd., according to the people. The investor group made a proposal to provide around $2 billion to $2.5 billion of capital to Vodafone Idea, the people said, asking not to be identified because the information is private.
Vodafone Idea said in September it plans to raise as much as Rs 25,000 crore ($3.4 billion) selling shares and debt to shore up its finances as competition heats up in the Indian wireless industry. It wasn’t immediately clear how a potential deal with the Oaktree-backed consortium would be structured.
The Indian carrier has also been speaking to other potential investors, and there’s no certainty the negotiations will lead to an agreement, the people said. Representatives for Oaktree, Varde and Vodafone Idea declined to comment.
Shares of Vodafone Idea rose as much as 4.4% Thursday in Mumbai. The stock has fallen more than 25% since September 3 when it said its ability to continue as a business relied on successful negotiations with lenders and sufficient cash flow to settle or refinance liabilities coming due.
--With assistance from Sally Bakewell, Crystal Tse, Jennifer Ryan and Ben Scent.
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4 Comments on this Story
Vinayak Tamhankar5 days ago
Still people dare to invest in indian telecom is just funny news. That to in a company govt have zero support on any level. Best luck to investor company.
Simplysuperb6 days ago
The Power of your Subconscious Mind
Amit6 days ago
It was all good going for Vodafone and idea while they were using the system to hit and destroy public sector telecom giants like BSNL and MTNL. They never paid spectrum dues because everything in India is free for them. But times changed. Now the same thing is being done to them by the new Goliath on the block. Hope they adapt to the changing customer needs and technological environment before they are fossilised