BENGALURU ,Sept03,2020: U.S. wireless carrier Verizon Communications Inc VZ.N and Amazon.com Inc AMZN.O may invest more than $4 billion for a stake in India’s Vodafone Idea Ltd VODA.NS, the Mint newspaper reported on Thursday, sending shares in the struggling Indian telecom firm up 10%.
Vodafone Idea’s stake-sale talks had been paused pending the outcome of a court hearing in India, which created uncertainty and could have threatened Vodafone Idea’s survival, Mint reported, citing two unnamed people aware of the negotiations.
But Amazon and Verizon are set to resume discussions following a Supreme Court ruling on Tuesday which gave mobile carriers 10 years to settle government dues.
Heavily indebted Vodafone Idea – a joint venture between Britain’s Vodafone Group Plc VOD.L and India’s Idea Cellular – had previously said its ability to continue as a going concern rested on a positive outcome of the hearing.
It has paid the Indian government 78.5 billion rupees ($1.1 billion) in telecoms dues, according to regulatory filings, but still owes roughly 500 billion rupees ($6.8 billion) more.
