Amazon, Verizon may invest over $4 billion in India's Vodafone Idea: report
Reuters
Published Sep 02, 2020 11:58PM ET
Updated Sep 03, 2020 03:55AM ET
BENGALURU (Reuters) - U.S. wireless carrier Verizon Communications Inc (N:VZ) and Amazon.com Inc (O:AMZN) may invest more than $4 billion for a stake in India's Vodafone (NASDAQ:VOD) Idea Ltd (NS:VODA), the Mint newspaper reported on Thursday, sending shares in the struggling Indian telecom firm up as much as 14%.
The news comes two days after India's Supreme Court ruled that mobile carriers must settle government dues within 10 years, giving Vodafone Idea some reprieve in a case that it had said could affect its ability to continue as a going concern.
Vodafone Idea, a joint venture between Britain's Vodafone Group Plc (L:VOD) and India's Idea Cellular , still owes roughly 500 billion rupees ($6.8 billion) to the Indian government. It is among India's top three telecom firms by subscribers.
Vodafone Idea's stake-sale talks had been paused pending the court ruling, but Amazon and Verizon are now set to resume discussions, Mint reported https://www.livemint.com/companies/news/amazon-verizon-may-give-voda-idea-lifeline-11599102122521.html, citing two unnamed people aware of the negotiations.
Amazon and Verizon did not return emails seeking comment outside regular U.S. business hours.
Shares in Vodafone Idea were up 9.6% at 10.85 rupees by 0645 GMT.
The Financial Times reported in May that Alphabet Inc's Google (O:GOOGL) was considering buying a roughly 5% stake in Vodafone Idea. Reuters reported in June that Amazon was in talks to buy a stake in Vodafone Idea's Indian rival Bharti Airtel (NS:BRTI).
Separately on Thursday, Indian news channel CNBC-TV 18 reported https://twitter.com/CNBCTV18Live/status/1301401243047268352 that Vodafone Idea could "take stock" of a sale of its optic fibre business at a Friday board meeting scheduled to consider a fundraising plan.
Canada's Brookfield Asset Management Inc (TO:BAMa) and private equity group KKR (N:KKR) were contenders for the business, with Brookfield seen as the frontrunner, CNBC-TV 18 said.
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Vodafone Idea declined to comment on "speculation" when contacted by Reuters. Representatives for Brookfield and KKR did not immediately return Reuters emails seeking comment.
Written By: Reuters
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