Vodafone Idea Shareholders Approve Rs 1,600 Crore Optionally Convertible Debentures Issuance to American Tower Corp
In a regulatory filing on February 25, Vodafone Idea announced that its shareholders had approved the preferential issuance of up to Rs 1,600 crore of optionally convertible debentures (OCDs) to American Tower Corp (ATC), a vendor of telecom infrastructure. The Extraordinary General Meeting (EGM) held on Saturday, February 25, saw 99.99% of the votes in favour of the resolution pertaining to the issue of OCDs.
The telco plans to use the proceeds from the OCDs issue to pay off amounts owed to ATC India under the master lease agreements. The remaining amount will be utilised for general corporate purposes. The Vi board had earlier approved the allotment of OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure Pvt. Ltd. in January 2023.
This is the second time that Vi’s board has approved the preferential issuance of OCDs to ATC Telecom Infrastructure. The first approval was granted on November 21, 2022, during an EGM of the company. At the November 2022 EGM, Vi’s shareholders had approved the issuance of shares worth Rs 1,600 crore to ATC Telecom Infrastructure on a preferential basis. This move was aimed at settling dues owed to the infrastructure vendor by converting the due amount into equity, if it remained unpaid in 18 months.
In summary, Vodafone Idea shareholders have approved the issuance of OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure, a vendor of telecom infrastructure, to pay off amounts owed under master lease agreements and for general corporate purposes. This is the second time that Vi’s board has approved the preferential issuance of OCDs to ATC Telecom Infrastructure.
Vodafone Idea is one of the leading telecom service providers in India. The Company is engaged in the business of Mobility and Long Distance services, trading of handsets and data cards.
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