Vodafone Settles with Vodafone Idea: A New Chapter in Telecom Liabilities

Vodafone Idea is set to receive approximately Rs 5,836 crore from Vodafone Group as part of a re-settled liability claim agreement. The deal involves financial distributions and adjustments, with Vodafone Group releasing Rs 2,307 crore over the next 12 months and earmarking shares for Vi's benefit.

Vodafone Idea, a struggling telecom operator, is positioned to receive around Rs 5,836 crore from Vodafone Group following a renegotiated liability claim pact. This settlement is detailed in regulatory filings by both involved companies, highlighting efforts to stabilize Vodafone Idea's financial position.

According to the revised agreement, Vodafone Group's promoters will dispense Rs 2,307 crore over the forthcoming year to bolster Vodafone Idea's finances, aligning with terms laid out in the amendment agreement. Additionally, Vodafone Group has designated 328 crore shares it holds in Vi for the operator's advantage.

Under the terms, Vi can instruct Vodafone to sell these shares in parts, with any resulting cash being directed to them. As stated in recent filings, the earmarked shares' current market value stands at Rs 3,529 crore. The settlement follows the Contingent Liability Adjustment Mechanism crafted during Vodafone India and Idea Cellular's merger in 2017 to address pre-merger liabilities.

(With inputs from agencies.)