Kolkata: Vodafone idea (Vi) announced the planned issuance of preferential bonds in Boston American Tower Company (ATC) could not be concluded as a key condition – the conversion by the government of the Rs 16,130 crore accrued interest on Vi’s deferred AGR related equity contributions – has not been made on time.
“…one of the conditions precedent to the preferential issuance was the conversion by the Government of India of AGR suspension interest and spectrum rights owed by the company (read: Vi) into shares of the company…since Vi does not have any received communications from the government upon such conversion, the issuance of OCDs to ATC has not been completed within the validity period of the shareholder resolution (i.e. 15 days from the date of adoption of the resolution), ”Vi said in an exchange filing Tuesday .
However, Vi said it is in talks with ATC for renewal of the agreement and will seek further shareholder approval if necessary.
Vi’s regulatory filing comes a day after ET reported that ATC filed a recent filing with the US Securities and Exchange Commission (SEC) has said Vi’s recent issuance of preferential bonds to it is subject to conditions that may not be met.
Vi shares closed 1.22% lower at Rs 8.07 on the BSE Tuesday.
However, the debt fundraising — which talks have been going on for more than a month now — is being held up as the country’s largest lender seeks clarity on the government’s potential stake in Vi, as well as the telco’s scale-up plans.