NEW DELHI: Cash-strapped Vodafone Idea is likely to raise $2-$3 billion soon even as the promoters are currently involved in "hectic discussions with investors for finalising the binding term sheet", ET NOW reported citing sources.
A big chunk of investment will come from Vodafone Plc and other several US-based PE investors. The Birlas may skip the initial stage of the funding exercise and instead join the second stage, sources told the news channel.
"The reason the deal was taking time was due to complex due-diligence as it involved important tax implications due to participation of overseas investors, this Fund infusion also likely to include strict milestone payment plan, which will be a mix of debt & equity," ET NOW reported. It added that the final proposal will be taken to the board soon.
US-based GoldenTree Asset Management and Pacific Investment Management Co (PIMCO) recently joined a consortium led by investment firm Oak Hill Advisors for the funding round, ET reported last month. Sixth Street, Twin Point Capital, and Varde Partners were among the global investors in the Oak Hill Advisors-led consortium that had already submitted a non-binding term sheet to the telco.
The proposed funding model is likely to be a blend of convertible instruments, comprising bonds and warrants with a linked equity option that will allow the consortium members to turn a portion of the debt into shares of the company, bankers and industry executives with knowledge of the matter had told ET.
The telco had in September announced a Rs 25,000 crore fundraising plan via a mix of debt and equity.
Mumbai-based InCred Capital and its US investment banking partner PJT Partners are known to be helping Vi in its efforts to raise funds.
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