Airtel set sights on acquisition of Vodafone's 21.05% stake in Indus Towers

Bharti Airtel is currently engaged in discussions to purchase a 21.05 per cent stake in Indus Towers from UK-based Vodafone Group, the Economic Times (ET) reported. This potential acquisition might afford India's second-largest telecommunications company a controlling interest in Indus Towers. The report, citing industry experts, claimed that if Vodafone Plc proceeds with selling its stake in Indus to Airtel, it could inject some of the resulting funds into Vodafone Idea (Vi), its struggling telecom venture in India in partnership with the Aditya Birla Group.However, negotiations have hit a roadblock due to valuation disagreements. Airtel, led by Sunil Mittal, is hesitant to acquire Vodafone's stake at the current market price of Indus shares, which have surged by over 77 per cent since January. Instead, Airtel seeks a valuation closer to Rs 210-212 per share, aligning with the price at which US private equity fund KKR and Canadian pension fund CPPIB sold their shares in Indus in February 2024, ET said. As per Indus Towers' latest filing with the BSE, Airtel holds the largest stake at 47.95 per cent, followed by Vodafone Group at 21.05 per cent, with the remaining 30.97 per cent held by the public. If Airtel were to acquire Vodafone's stake, its ownership in Indus would rise to 69 per cent.