Vodafone Idea: Vodafone Idea Managing Director Ravinder Takkar announced the possibility of a takeover by the government a day after the telecom company announced the conversion of the entire amount of interest related to spectrum auction installation and Adjusted Gross Revenue (AGR) dues into equity. denied. With this move, the government will become the largest shareholder with 35.8 per cent stake in the troubled telecom company.
Talking to the media, Takkar said that as long as the partners Aditya Birla Group (ABG) and Vodafone Plc Holdings hold 26 per cent stake in the company, the promoters will have control of the governance rights.
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The collision tried to allay investors’ fears that the government’s takeover could result in a fall in the price-earnings multiples, which is common among listed companies owned by the government.
The effect of Thakkar’s assurance was visible on Vodafone Idea’s stock and it gained 11 per cent (1.05 pm) to reach Rs 13.05. However, a day earlier it had registered a decline of 20 per cent.
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Vodafone Idea has opted to convert seven of the interest on the deferred spectrum installation and its AGR dues into equity for a period of four. With this, the government will get 35.8 percent stake in the company.
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Takkar said post equity conversion, the shareholding of both the promoters will come down to 46.3 per cent. He said the engagement of both the promoters is very high and they are committed to the business. Also involved in all decisions.
The promoters will have control of the governance rights as long as ABG and Vodafone Plc hold 26 per cent of the holding stake.
He said that as per the Revised Promoter Agreement, their governance rights will be protected as long as the minimum shareholding of both the promoters is 13-13 per cent, which together comes to 26 per cent.
Takkar also tried to assure that converting debt into equity was a “good option” for the company.
Takkar said, “Finally the support from the government has attracted good interest from investors, especially international investors. Converting debt to equity can be a good decision to raise funds from the market and we expect to raise capital soon.”
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Takkar said, “The government has not expressed any intention to nominate a member on the board of the company and we are not expecting any of his board members. The company’s operations will continue.
He said, the government also wants the promoters to run the company. He said, “They have made it clear that they want to see the promoter running the company. They want three private companies in the sector – they don’t want monopoly of both the companies. The government has made it clear that it does not want to run the company and does not want to take over.
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