Vodafone Idea | Govt Equity
Govt not interested in participating in Vi's management: Ravinder Takkar
After Vodafone Idea's decision to convert the interest on spectrum auction installments and AGR dues into equity that made the government the biggest shareholder in the company, its Managing Director Ravinder Takkar said the government has no intention to participate in management.
"The government has made it amply clear to me in several meetings that the only purpose of permitting telcos to convert the interest component into equity was to destress the Sector and save it from monopoly or duopoly not to participate in management," Takkar said, reported ET.
"Following conversion, it is expected that the government will hold around 35.8 percent of the total outstanding shares of the company and that the promoter shareholders would hold around 28.5 percent (Vodafone Group) and around 17.8 percent (Aditya Birla Group), respectively," Vodafone Idea had said in a regulatory filing on January 11 (Tuesday) morning.
As to why Vodafone Idea opted to convert its interest dues to government equity, Takkar said, "We owe a lot of debt to the government and so converting that into equity was a good option for us. It will help attract investors."
According to the company's calculation, the net present value (NPV) of its outstanding debt to the government on deferred spectrum payment and AGR dues stands at Rs 16,000 crore and at a value of Rs 10 per share, the government would get 35.8 percent.
Takkar said the article of association had been amended to allow voting rights to shareholders with stake over 13 percent in the company, allowing promoters to participate in decision making even if their share falls under 21 percent each, like in the case of the Aditya Birla Group.
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