By P.R. Venkat


SINGAPORE--Vodafone Group plans to raise as much as $1.1 billion by selling part of its stake in an Indian telecom tower operator, according to a term sheet seen by The Wall Street Journal.

The U.K. telecom operator plans to sell 268.0 million shares, representing a 9.94% stake in Indus Towers, the term sheet showed.

Vodafone intends to sell shares at a price in a range of 310 Indian rupees to 341 rupees, equivalent to $3.72-$4.09 per share.

The term sheet said the transaction could happen as one or more share sales on the screen-based trading platform of Indian stock exchanges.

In 2013, Indian telecom operators Bharti Airtel, Vodafone, and Idea Cellular combined their telecom tower assets with Indus Towers. Airtel and Vodafone each had a 42% stake in the tower business, with Idea Cellular owning the rest.

Vodafone has been reducing its stake in Indus Towers over time and currently holds a 21% stake. In 2022, Vodafone said it talked to several parties about selling its remaining shareholding in Indus Towers.

Analysts expect Vodafone to use proceeds from the stake sale to pare down its debt. Vodafone has been looking to restructure its business, especially in Europe. In March, the company agreed to sell its Italian business to Swisscom for $8.7 billion in cash.

Indus Towers is one of the world's largest telecom tower companies, operating 219,736 towers and 368,588 co-locations. It has a nationwide presence covering all 22 telecom circles.

The term sheet named BofA Securities, Morgan Stanley and Jefferies among banks acting as placing agents on the Indus Towers deal.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

06-18-24 2145ET