off-the-wire

UPDATE 1-India's Vodafone Idea again approves debentures worth $195.32 mln to ATC Telecom

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds detail, background) BENGALURU, Jan 31 (Reuters) - Indian telecom operator Vodafone Idea Ltd said on Tuesday it had again authorised preferential issue of debentures worth up to 16 billion rupees ($195.32 million) to ATC Telecom Infrastructure Pvt Ltd, after an earlier approval missed the deadline for issuing the debt. The debentures are convertible into shares at 10 rupees a piece to ATC Telecom, Vodafone Idea said in a stock exchange filing.


The company in November also approved the debentures, however, they were not issued within the prescribed period of 15 days and the approval lapsed.


Vodafone Idea said last month one of the conditions for the preferential issue to ATC Telecom to go through was conversion of interest from deferment of adjusted gross revenue and spectrum dues owed by the company into equity shares to the Indian government.


The company said it did not receive any communication from the government on the conversion, disallowing the completion of the issue.


Vodafone Idea in January last year had approved the conversion of interest on dues into equity for the government which could give it a 35.8% stake in the company.


"The funds so raised shall be used to pay amounts owed by the company to ATC under the master lease agreements and ... for general corporate purposes of the company," Vodafone Idea said.


A shareholder meeting is schedule for Feb. 25 to approve the issue of debentures.
($1 = 81.9180 Indian rupees) (Reporting by Anuran Sadhu in Bengaluru Editing by Vinay Dwivedi)

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