US wireless operator Verizon and Amazon may invest more than $ 4 billion (approximately Rs. 29,354 crore) for a stake in India’s Vodafone Idea, the Mint newspaper reported on Thursday, making the company’s shares of distressed Indian telecommunications rise 10 percent.
Vodafone Idea stake sale talks had been halted pending the outcome of a court hearing in India, creating uncertainty and could have threatened the survival of Vodafone Idea, Mint reported, citing two anonymous people familiar with the talks.
But Amazon and Verizon are ready to resume discussions after a Supreme Court ruling on Tuesday that gave mobile operators 10 years to settle government fees.
Vodafone Idea did not immediately respond to Reuters’ request for comment. Amazon and Verizon did not return emails seeking comment outside of regular US business hours.
Vodafone Idea, a highly indebted joint venture between Great Britain’s Vodafone and India’s Idea, had previously said that its ability to continue as a going concern was based on a positive audience result.
It has paid the Indian government Rs. Rs. 7.854 crore in telecom fees, according to regulatory filings, but still owes roughly Rs. 50 billion rupees more.
Vodafone Idea shares, which ended 13 percent lower after Tuesday’s court ruling, rose eight percent to Rs. 10.70 on the NSE index at 04:05 GMT.
© Thomson Reuters 2020
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