LONDON (dpa-AFX) - Vodafone Group Plc. (VOD.L, VOD) Wednesday announced a placing of its remaining 79.2 million shares in Indian telecom firm, Indus Towers Ltd. or 3 percent stake, through an accelerated book build offering.
The proceeds from the transaction will be used to repay Vodafone's outstanding borrowings of around $101 million to Vodafone's existing lenders, secured against Vodafone's Indian assets.
Under the terms, Indus has a security over the residual proceeds from the placing to guarantee obligations from Vodafone Idea Ltd. or Vi to Indus under the Master Services Agreements or MSAs.
Vodafone intends to contribute the residual proceeds from the placing, after repayment of Vodafone's outstanding borrowings, towards an issue of new equity shares by Vi, a capital raise.
The proceeds from the capital increase would be used by Vi to pay outstanding MSA dues to Indus.
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