Verizon Communications Inc, the largest wireless carrier in the US, and Amazon might invest over $4 billion for a stake in struggling India’s Vodafone Idea Ltd, the Mint newspaper reported.
Vodafone Idea’s stake-sale talks were paused as the outcome of the Indian apex court was pending, as per the news report.
But Amazon and Verizon are set to resume talks following the Supreme Court’s verdict on Tuesday which gave telecom service providers 10 years to settle government dues.
Cash-strapped Vodafone Idea had earlier said its ability to continue rested on a positive outcome of the hearing.
It should be noted that Vodafone Idea has the weakest balance sheet among the top telecom players. The telecom major reported a Rs 25,460 crore loss for the June quarter. Its operations were also adversely affected by the COVID-19 pandemic due to store closure. The company’s Average Revenue Per User (ARPU) also declined from Rs 121 to Rs 114 in Q1.
Data showed the subscriber base for the telecom major fell to 27.98 crores at the end of June from 29.1 million at the March-end.
Meanwhile, Vodafone Idea, in its filing, said its board will meet on 4 September in order to consider proposals for fundraising.
Following the report, the shares of Vodafone Idea climbed about 25% in Thursday’s trade session to Rs 12.38.