Verizon and Amazon were tipped to invest as much as $4 billion in Vodafone Idea, Live Mint reported explaining their interest was piqued by a recent Indian Supreme Court ruling on adjusted gross revenue (AGR) payments.
The court this week gave operators a decade to make AGR payments, which Live Mint stated spurred the US companies to recommence talks halted due to uncertainty about the fees.
Vodafone Idea’s board is due to meet tomorrow (4 September) to dicusss fundraising.
The court ruling requires 10 per cent of the outstanding AGR sum to be paid paid by end-March 2021. Vodafone Idea has already paid INR78.5 billion ($1.1 billion) of a total INR530 billion the Department of Telecommunication ruled it owed, meaning its next payment isn’t due until March 2022.
Verizon and Amazon’s interest comes three months after Financial Times reported Google was considering acquiring a 5 per cent stake in the operator.
Vodafone Idea reported a net loss of INR254.6 billion in its fiscal Q1 (to end-June).
In June, Amazon reportedly held talks regarding a $2 billion investment in Bharti Airtel.
Reliance Industries sold nearly 33 per cent of its mobile unit to raise $20.22 billion from 12 investors, including Google, Facebook, Qualcomm and Intel.