Amazon and Verizon Communications are expected to soon resume talks to buy a large stake in Indian operator Vodafone Idea in a deal that could be worth over USD 4 billion, LiveMint reported, citing sources aware of the negotiations.
Discussions were paused earlier as parties awaited a decision by India’s Supreme Court on government dues. The court has decided to give telecom companies ten years to pay off the INR 1.4 trillion owed in dues. The decision was important for Vodafone Idea, struggling as it looks to pay off the dues and invest in network upgrades. And with the decision, negotiations can now continue. Vodafone Idea alone needs to pay off INR 43.4 billion more to the government in licence fee, spectrum usage charges, interest and penalties. It has paid off some of that amount.
The company resumed talks with financial and strategic investors this past week, LiveMint reported earlier, citing senior company officials. The company then said its board will meet on 4 September to consider proposals for fundraising. Earlier this year, The Financial Times reported that Google was in talks to buy a 5 percent stake in Vodafone Idea. The company then decided to invest USD 4.5 billion in competitor Jio Platforms, part of Reliance Industries.
