Vodafone Idea, one of India's leading telecom operators, has recently allotted 12,000 optionally convertible debentures to ATC Telecom Infrastructure, a subsidiary of American Tower Corporation. This move strengthens their partnership and enhances network capabilities, providing a better user experience to customers.
The allotment of the debentures comes as part of an agreement signed between Vodafone Idea and ATC Telecom Infrastructure in 2018. Under the agreement, ATC Telecom Infrastructure agreed to buy Vodafone Idea's standalone towers for an enterprise value of INR 38.5 billion.
The debentures allotted to ATC Telecom Infrastructure are worth INR 12 billion and can be converted into equity shares of Vodafone Idea at a price of INR 10 per share. The conversion can take place at any time between the third and tenth anniversary of the allotment of the debentures.
This move is expected to provide Vodafone Idea with additional financial resources to help fund its network expansion and improve service quality. It will also enable ATC Telecom Infrastructure to strengthen its foothold in the Indian telecom market.
The partnership between Vodafone Idea and ATC Telecom Infrastructure is expected to benefit both companies by leveraging their strengths and expertise. This will help them to provide better network coverage and quality to their customers.
In conclusion, the allotment of 12,000 optionally convertible debentures by Vodafone Idea to ATC Telecom Infrastructure is a significant move that strengthens their partnership and enhances their network capabilities. This will benefit both companies and provide a better user experience to customers.
